Reports suggest that the Japanese investment company Softbank is going to sell its holdings in ARM. This might be the biggest deal in the semiconductor industry. According to the estimates, the total holdings of ARM value around $40 billion and might be sold to Nvidia.
What is ARM?
ARM is a sem-conductor company that provided designs for chipsets to companies like Qualcomm and Mediatek. It is not a direct chip manufacturer, but indirectly it provides chipsets for all types of devices. From mobiles, tablets, and even many PCs run on ARM architecture.
Almost every company is dependent on ARM for providing chipset designs. Even Apple’s bionic chipsets are ARM-based, and the new Macbooks will also transition into ARM architecture.
About Nvidia’s deal with Softbank
Softbank acquired the holdings from ARM in 2016 for a staggering $32 billion. And thus they are surely selling these holdings for a premium at $40 billion to Nvidia. Though, the reason for the sale is not known.
Recently, Nvidia surpassed Intel to become the largest chipmaker worldwide. Its new estimated value stands at $300 billion. The company also released some top specs graphics cards that will surely enhance the already huge market share the company has. And adding that to that, the ARM holdings might make Nvidia an invisible company in the future. Let’s see when the deal gets finalized.
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