SoftBank Eyes $6.5 Billion Acquisition of Chip Innovator Ampere

Ampere, a trailblazing semiconductor business founded by former Intel executive Renee James in 2017, is reportedly on the cusp of being acquired by SoftBank for approximately $6.5 billion. Ampere has been a significant player in the technology industry, pioneering the design of ARM chips specifically for data centers. The company has secured major clients such as Oracle and Microsoft, highlighting its growing influence in the tech sector.

Renee James, who serves as the CEO of Ampere, embarked on this venture after a remarkable 28-year tenure at Intel, where she left after being overlooked for the CEO position. Since its inception, Ampere has carved out a niche in the semiconductor industry by focusing on low-energy ARM designs for data center chips, a concept that was novel at the time of its launch.

Oracle, a prominent customer of Ampere, disclosed in its annual report that it owns 29% of the chip company and has options and convertible notes that could give it a controlling stake. The deal with SoftBank, although not yet finalized, could reshape Ampere's ownership structure significantly.

"If either of such options is exercised by us or our co-investors, we would obtain control of Ampere and consolidate its results with our results of operation," – Oracle

Ampere was valued at $8 billion in 2021 when SoftBank initially expressed interest in acquiring a minority stake. However, recent reports suggest that the company's value might be slightly lower in the potential deal with SoftBank. The acquisition talks come amidst speculation about Ampere being on the market for a buyer since September.

Renee James' leadership at Ampere stands out in the male-dominated semiconductor industry, as she is one of only two women leading such companies. Her background includes a stint as a dealmaker at private equity firm Carlyle and a position on Oracle's board at the time she founded Ampere.

The potential acquisition by SoftBank underscores Ampere's strategic importance in the semiconductor sector. However, the terms of the deal are subject to change, and there remains a possibility that it might not materialize.