Ampere, the semiconductor company founded by former Intel executive Renee James, is reportedly close to selling itself to SoftBank — the latest development in an ongoing saga over the future ownership of the company. The deal is said to value Ampere at around $6.5 billion, according to Bloomberg, marking a decrease from the $8 billion valuation in 2021 when SoftBank was negotiating to acquire a minority stake.
Ampere specializes in designing ARM chips for data centers, making it a suitable target for SoftBank, which is the majority owner of chip designer ARM Holdings. Although Ampere has chosen not to comment on the matter, the potential acquisition could significantly impact the semiconductor industry landscape.
Founded in 2017 by James, following her departure from a 28-year tenure at Intel after missing out on the CEO position, Ampere quickly gained attention for its innovative approach to data center chips using low-energy ARM designs. James, who was previously involved in dealmaking at private equity firm Carlyle, seized an opportunity when chipmaker Macom expressed interest in selling a portion of its chip business. This led to Ampere’s inception with backing from Carlyle and Oracle, where James was serving on the board at the time.
In an unexpected turn of events, Oracle revealed in its annual report last October that it not only held a 29% ownership stake in Ampere but also possessed options and convertible notes that could give it control of the company. Furthermore, agreements were made directly with Ampere and other undisclosed investors. It was also disclosed that James would be stepping down from the board in mid-November, having served as an Oracle board member since 2015.
Since Ampere remains a private entity, the exact extent of James’ ownership is unknown, despite rumors circulating since September about the company seeking a potential buyer. The proposed deal with SoftBank represents a pivotal moment for Ampere’s future, although sources caution that the terms are subject to change and the acquisition may not materialize.
