NVIDIA CEO mulls boosting smartphone GPUs following Arm deal

Nvidia eyes ARM IP distribution network

Nvidia Corp. said it agreed to buy SoftBank Group Corp.'s chip division Arm Ltd. for US$40 billion, taking control of some of the most widely used technology in electronics in the semiconductor industry's largest-ever deal.Nvidia will pay US$21.5 billion in stock and US$12 billion in cash for the United Kingdom based-chip designer, including a US$2 billion payment at signing. Arm has become successful by licensing its technology to more than 500 companies, many of which are rivals to Nvidia, and the sale would create a "monopoly problem", he said.

Nvidia said it would retain the name of Arm and expand its base in Cambridge. That, combined with the fact that the majority of the price will be paid in Nvidia stock (up 5% at time of writing on the news, having already doubled this year), means this deal has to be about more than just SoftBank covering its speculative positions.

The deal has to potential to "reshape the global semiconductor landscape" and is expected to see "pushback" from regulators and competitors, as it puts the supply of vital chips for product manufacturers under the control of a single player, Reuters said.

Arm cofounder Hermann Hauser said it would be a "disaster" if Nvidia buys the British company he helped to build.

Hauser said the deal would have ramifications for companies who use Arm's chips.

When SoftBank bought Arm it committed to keep the company's headquarters in the UK.

Through this deal, NVIDIA will expand its reach to the mobile market beyond just its Tegra chip (that also uses Arm architecture), which is used in certain devices like the Nintendo Switch.

Under the terms of the deal, Santa Clara, California-based Nvidia will pay SoftBank $21.5 billion in stock and $12 billion in cash.

But a takeover by Nvidia, one of the many firms that licences ARM's designs, appears to pose a threat to its business model - why will its hundreds of other customers now have faith that they will have equal access to its technology?

Now, with Hermann Hauser and others warning that this deal will make Britain a USA vassal state, the government is under pressure to step in and ensure that control over vital home-grown technology is not lost to a foreign power.

Jean-Luc started CNX Software in 2010 as a part-time endeavor, before quitting his job as a software engineering manager, and starting to write daily news, and reviews full time later in 2011.

Nvidia plans to maintain its open licensing model and customer neutrality, Huang said. In the coming years Billions of computers with AI will create a new Internet of Things that is a thousand times bigger than today's Internet of People.

ARM creates computer chip designs that others then customise to their own ends. I'd not be surprised if the deal is killed sometimes in 2021, as we've seen in the past with Qualcomm trying to acquire NXP.

The head of Arm, Simon Segar, said a purchase by a US company would not affect which countries it sold to. The regulatory questions as to how the company will approach that responsibility are not unreasonable, but Nvidia is capable of addressing those concerns.



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