SoftBank's $6.5 billion acquisition of Ampere faces a deeper investigation by the FTC.

SoftBank's Acquisition of Ampere Deal Under FTC In-Depth Review

According to informed sources,Disadvantages of excessive foreign exchange reserves the U.S. Federal Trade Commission (FTC) has launched a deeper investigation into SoftBank Group's acquisition of semiconductor design company Ampere Computing LLC. This move signals that the deal may undergo prolonged scrutiny and could potentially face legal obstacles.

The FTC has issued a "second request" to SoftBank and Ampere for information related to the transaction, an important indication of the U.S. regulator's in-depth review. It is understood that only a few transactions reach this stage, and the investigation process may last a year or more.

Background of the Transaction: SoftBank Betting on AI Infrastructure

In March this year, SoftBank announced its all-cash acquisition of Ampere, valuing the latter at as much as $6.5 billion. This deal is seen as a significant step for SoftBank in strengthening its global artificial intelligence (AI) infrastructure layout.

Ampere is a semiconductor company specializing in high-performance server processor design, and its ARM architecture CPUs are widely used in data centers, serving as critical hardware infrastructure supporting AI, large model inference, and cloud computing. The acquisition aims to combine Ampere's chip capabilities with SoftBank's global network and AI strategy to seize a competitive edge in future AI computational power.

Facing Potential Long-term Review and Obstacles

Industry insiders point out that the FTC's in-depth review may imply that the deal will remain in a state of uncertainty for a longer period, and regulatory bodies may be cautious about the competitive impact the transaction might have. In some cases, such reviews eventually lead to lawsuits filed by regulators to block the completion of the deal.

Currently, Ampere representatives declined to comment, SoftBank's spokesperson has not yet responded, and the FTC has not immediately replied to requests for comment. The market can only judge the depth of the review and future developments based on limited information.

Strict Review Environment for Global Chip Mergers

In recent years, regulations on mergers and acquisitions in the semiconductor industry have tightened globally. Driven by concerns over supply chain security, technological monopolies, and market competition, the U.S. and other major economies have intensified the scrutiny of large chip acquisition deals.

Previously, NVIDIA's acquisition of ARM faced antitrust resistance from the FTC and regulators in multiple countries, ultimately leading to the failure of the deal, keeping the market highly vigilant about the regulatory outlook for major chip transactions.

Impact on SoftBank's AI Strategy Awaits Observation

This acquisition of Ampere is considered one of the core steps to strengthen SoftBank Chairman Masayoshi Son's AI strategy. If the deal is delayed or impeded due to the review, it could affect SoftBank's global competitive position in AI chips and infrastructure.

SoftBank has previously expressed optimism about the growing demand for chips driven by AI and plans to enhance its competitiveness in high-performance computing through investments or acquisitions. The ultimate direction of the Ampere transaction will directly impact SoftBank's pace of expansion in the AI ecosystem and industry layout.

Review Results Will Affect Market Sentiment

As the FTC conducts an in-depth review of SoftBank's acquisition of Ampere, the market will closely monitor the subsequent progress of the transaction and regulatory feedback. If the review period extends or potential litigation arises, it could impact SoftBank's performance in the capital market and the progress of its global AI infrastructure strategy.

Investors and semiconductor industry observers will continue to track the potential impacts of this transaction by U.S. regulatory agencies to assess the global semiconductor industry landscape and capital flow trends.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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