When the purchase of NVIDIA from ARM was announced back in 2020, the stir was instant. It was the largest purchase in the history of semiconductors and brought together the most important companies in the sector. Many predicted a very complicated negotiation.
And from the first moment stones were found along the way. The entire industry did not want this purchase to happen, as it gave NVIDIA a position of enormous power over an architecture that is set to be the future of microchips.
Then there were the countries themselves, such as United States and United Kingdom, who assured that they were not happy with the purchase attempt due to antitrust laws. And if NVIDIA bought ARM, what was going to be formed was a monopoly by the American company.
With this scenario, NVIDIA has had a very difficult time closing the purchase during these two years. Reaching the point of no return where we find ourselves right now: the American company has just announced that it is abandoning the attempt to purchase ARM.
“NVIDIA and SoftBank have just announced the completion of the previously announced transaction whereby NVIDIA would acquire ARM from SBG. The parties have agreed to terminate the agreement due to significant regulatory issues preventing the consummation of the transaction“, both companies have exposed.
After the crash, the CEO of ARM has resigned and will be replaced by René Haas, the current president of the company. Without a doubt, this failure has affected the chip company, which is going to be launched on the stock market as a measure by SoftBank to recover part of the money they have lost.
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This outcome had been seen to come for a long time, but the most critical point was experienced at the end of January, when NVIDIA itself let it leak that the company had given up on the negotiation. And not because of SoftBank, but because of the regulators who were making too many hitches.
In this way, the microchip and semiconductor sector is out of doubt after two years of uncertainty, where much was had speculated about the future of the architecture if NVIDIA managed to get hold of it.
Let’s not forget that ARM is responsible for all the processors in mobile phones, tablets, every time more computers (such as Apple’s MacBook) and the entire automotive sector. Hence its importance and the concern of regulators for the future of architecture.