Nvidia has entered the final negotiation stage for the acquisition of ARM

by ddos ·

Since the Japanese telecommunications giant SoftBank Group announced that it would sell its British chip design company ARM, news of the entry of various giants can be said to be endless, and the entry of the graphics card industry tycoon Nvidia has brought the atmosphere of this commercial acquisition war to a climax.

At the beginning of August this year, the commercial representative of SoftBank Group sent a message to Nvidia, TSMC, Foxconn, Qualcomm, Apple, and Samsung seeking to sell ARM, but Apple said that it is not interested in this industry that requires long-term investment and unclear returns, and other companies also left the negotiating table one after another. Currently, the only one left is Nvidia.

“chip” by osde8info is licensed under CC BY-SA 2.0

At present, according to reports from the British media, it is known that the commercial negotiations for Nvidia’s acquisition of ARM have entered the final stage, and the results of the negotiations will be officially announced before the end of this summer.

According to sources, the CEO of SoftBank Group Masayoshi Son asked Nvidia for 40 billion pounds ($52 billion), which is a $20 billion increase from the price they bought ARM four years ago. The amount of this price increase comes from ARM’s future prospects.

What’s more, ARM’s main customers are all well-known smartphone-related manufacturers in the world, such as Apple, Samsung, Qualcomm, and Huawei. The chip market share in the global smartphone market is as high as 90%.

However, even if NVIDIA spends US$52 billion with a big hand, this important business negotiation cannot be completed immediately. The first thing to bear is the review of the British government. If NVIDIA decides to move ARM’s R&D center out of Cambridge, then It is bound to have a major impact on the level of science and technology in the UK, making relevant talents either go to work in the United States or work in the United States, and this is definitely a situation that the British government does not want to see.

In addition, ARM’s existing chip license customers may also turn to seek other more independent chip design solution providers because of NVIDIA’s acquisition, which is not good for ARM’s future business prospects.

Via: wccftech