According to the latest news from foreign media, NV is negotiating to acquire arm, its UK chip design subsidiary, from Softbank in the form of cash and stock. The transaction has a valuation of more than $32 billion for arm.
People familiar with the matter did not disclose exact details of the price or method of the deal, but the proposed deal, which includes cash and shares, valued arm higher than Softbank paid $32 billion to acquire it in 2016.
For this acquisition, the outside world is still optimistic, because the acquisition of arm will further consolidate NV's central position in the semiconductor industry, as arm's technology is finding wider applications outside mobile devices, data centers and personal computers (including Apple Mac).
Arm will change NVIDIA's product lineup, which has so far focused on the high-end chip market. Its powerful graphics processor (data intensive task) is usually sold to developers of PC game player, scientific research, artificial intelligence and autopilot, and encryption money miners.
The deal could be a wake-up call for other big arm licensees, including apple, Broadcom and Qualcomm, who may be worried about a unique asset being acquired by potential competitors such as NV.
It is understood that in order to appease political scrutiny of Softbank's acquisition of arm, the largest technology acquisition so far by a British company, the Japanese group had to make a series of binding commitments to the company, including increasing the number of arm employees and retaining its Cambridge headquarters.