SoftBank is reportedly trying to sell UK’s Arm Holdings to US chip company Nvidia. The bidding price is said to be more than $40bn. Sources claim that a cash-and-stock take over by Nvidia may be announced as soon as Monday. This will make SoftBank the largest shareholder in the US chip company.
News of the deal began making rounds in July earlier and was reported that Nvidia was the only suitor for the SoftBank. If the deal receives a greenlit, it will be one of the largest deals ever in the chip sector.
ARM is semiconductor and software design company wholly owned by Japanese conglomerate SoftBank Group and its Vision Fund.
Nvidia will become a Global leader in Chipmaker Sector
It’s not just any small brand. The company’s chip power mobile device processors for companies including Apple, Samsung, and Qualcomm. The value of ARM chips has only gone up in recent times. With Microsoft manufacturing ARM-based Surface models and Apple planning to switch Macs to ARM-based chipsets. Nvidia will make a fortune if it manages to acquire ARM holdings.
Nvidia is currently the worlds leading GPU maker. But it does not have a market share when it comes to the CPU design. With the acquisition of ARM, Nvidia is likely to enter the CPU market in the coming future.
ARM chipsets have seen a wide range of applications in various fields. Demands for ARM-based chipsets have been increasing in mobile devices, data centers, and personal computers including Apple’s Mac and Microsofts Surface. With its 6nm chipset designs set to revolutionize the Chromebook market and ARM is not just any small player in the chipset market.
Nvidia recently overtook Intel in becoming the world’s most valuable chipmaker. ARM would transform Nvidia’s product line up completely. The company has only focused on providing powerful graphics processors that are designed to handle focused, data-intensive tasks.
This deal will make Nvidia the centre of Semiconductor industry.
sources: Verge, Financial Times
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