SoftBank Group's acquisition of semiconductor design firm Ampere Computing LLC is likely to undergo a prolonged review by the U.S. government. Sources indicate that the Federal Trade Commission (FTC), one of the two regulatory bodies responsible for scrutinizing the deal, has initiated a deeper investigation. This involves a formal request for additional information, a step that only a small fraction of transactions encounter. In some instances, such investigations can last a year or more and may signal potential legal challenges to block the deal.
Neither Ampere nor SoftBank representatives have provided comments, and the FTC has yet to respond to requests for statements. Announced in March, SoftBank's all-cash purchase of Ampere values the latter at $6.5 billion, marking a significant move by the Japanese company to bolster its artificial intelligence infrastructure. Ampere's server processors are critical components in data center computers.
