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NVIDIA touted to take over chip manufacturing giant ARM – reports

NVIDIA touted to take over chip manufacturing giant ARM – reports

SoftBank had acquired ARM in 2016 in a deal worth $32bn

NVIDIA ARM

Recent reports revealed that the Japanese SoftBank group, which owns British company ARM Holdings, plans to sell the company or list it in the stock market to become a public company instead of keeping it as a private company, as is currently the case.

It seems that the closest candidate to buy ARM is the American company NVIDIA, which specializes in manufacturing graphics processors in addition to making server processors and data centers.

SoftBank acquired ARM in 2016 in a deal worth $32bn. While the company’s current valuation pegs it at $44bn, analysts predict its value to rise to $68bn by 2025 .

In the event of a deal to sell the company to NVIDIA, it will likely be the largest deal done ever in the field of processors and chipsets.

ARM specializes in developing and designing the architecture of reduced instruction set computing (RISC) processors.

ARM’s technology is widely used across smartphone chips available in the market today as well as in tablets and in other portable electronic devices. Even future Apple computers that will use Apple-made processors will be built primarily on the ARM architecture.

The ARM purchase may be a very important step for NVIDIA which is already dominant in the graphics processor market.

And while it does not work in the field of computer processors, things may change in the future with the increase in the desire to leave the x86 architecture (as is currently found in Intel and AMD processors) as opposed to the ARM architecture which enables processors with much lower power consumption and a very small heat output.

The deal may therefore be the start of NVIDIA’s march in the world of processors to compete with both Intel and AMD, which currently have a monopoly in the field.

This story originally appeared on MENA Tech

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