The takeover of one of the UK’s leading semiconductor developers by Japan's Softbank is reportedly to be referred for a national security review.
SoftBank, the giant tech investor that bought the UK's Arm Holdings in 2016, is thought to have proposed a takeover of the Bristol-based startup last month after interest grew in its accelerators for artificial intelligence and machine learning.
But, due to growing concern about foreign companies buying critical UK technology, the deal is being examined by the Business Department’s investment security unit, the Daily Telegraph reported.
This would allow a $500 million-plus (£400 million-plus) takeover to be confirmed, the report indicated, which would be a fraction of what the microchip company was valued at in 2020, when a financing round put its at $2.8 billion.
Graphcore has seen hardware sales slow, according to reports this year, with revenue down 46% to $2.7 million in its latest financial report.
Its semiconductors designed for AI software have struggled to compete with Nvidia.