Nvidia would be interested in buying ARM, a chip company that belongs to the Japanese group SoftBank. According to Bloomberg, the deal may be the largest in the history of the semiconductor industry, although possible figures have not been commented on.
ARM was purchased by SoftBank in 2016 for $ 32 billion. Now, according to Bloomberg, the Japanese group is interested in taking over the chip company, which is based in Cambridge, England. The conglomerate is studying both to dispose of part and all of its participation in the ARM business.
Nvidia is known for its graphics cards, but has also been investing in new areas such as artificial intelligence and autonomous cars.
Despite being the main interested in the business, other potential buyers may emerge in the future. Bloomberg, Softbank, Nvidia and ARM have not made statements about the possible deal.
If the deal goes through, Nvidia would become a threat to companies like Intel, Qualcomm and AMD, all makers of microprocessors used in computers and cell phones around the world.
ARM does not produce chips, it only designs and creates instructions that are licensed to other companies to manufacture their own processors. Apple, for example, one of these partners. And with the recent announcement that Macs are going to run Arm processors, the trend is that the business will be quite profitable for those who acquire ARM.
Apple would have even been consulted about a potential acquisition, but according to Bloomberg, the company does not plan to make an offer. Apple would consider that ARM’s operations do not fit well with the company’s business model, and would also fear questioning from regulatory bodies as it owns a license widely used by many of its competitors.
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