New York: US-based graphic giant Nvidia is close to acquiring SoftBank-owned UK chip company ARM in a deal valued at more than $40 billion, reports said.
The cash and stock deal will see NVIDIA buy the semiconductor and IP design firm from SoftBank and its associated SoftBank Vision Fund, with NVIDIA taking an eye towards expanding Arm’s IP licensing business while also using Arm’s technology to further pierce into the datacenter market. The deal is just being formally announced today and will likely note close for some time, as it is expected to be required to clear multiple regulatory hurdles in the UK, US, China, and other governments across the globe.
Arm supplies the chip technology for virtually all mobile devices such as phones and tablets but is also expanding into processors for cars, data centre services and other devices.
The British company does not make chips. Instead it licenses out the underlying technology so others can make chips with it. It has previously collaborated with Nvidia.
Last year Nvidia said it would make its chips work with processors from Arm to build supercomputers, deepening its push into systems that are used for modelling both climate change predictions and nuclear weapons.
SoftBank acquired Arm for $32 billion in 2016, its largest-ever purchase, in part to expand into the internet-of-things technology, which connects everyday devices from traffic signals to refrigerators to the internet.