Nvidia Is Struggling To Get The Arm Deal Done. Qualcomm Is Looking In
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U.S. chip manufacturer Qualcomm has offered to invest in U.K. chip designer Arm if the company’s $40 billion acquisition by Nvidia fails to go through due to regulatory concerns.
Qualcomm ready to invest in Arm
Nvidia has tabled a $40 billion offer to purchase U.K. chip designer Arm. However, the deal is facing some regulatory uncertainties and could be blocked from happening. If that happens, U.S. chip manufacturing giant Qualcomm has revealed that it would be ready to invest in Arm.
Qualcomm’s incoming CEO, Cristiano Amon, stated that the company is willing to buy a stake in Arm alongside other major investors. However, the deal depends upon SoftBank, Arm’s current owners, not selling the company to Nvidia.
Amon said pointed out that if Arm has an independent future, then there would be a lot of interest from numerous companies within the sector, including Qualcomm, who are ready to invest in Arm. If Arm is no longer under SoftBank and moves to become a publicly traded company, it would have numerous companies investing in it and that would ensure great possibilities for Arm, he added.
The incoming CEO said Qualcomm is open to the idea of investing in Arm, and he has held discussions with certain companies that feel the same way.
An IPO would not be enough for Arm
Although Qualcomm is in support of Arm becoming an independently listed company, Nvidia believes the move would not be enough to support Arm’s growth. Arm’s energy-efficient chip architecture is used in 95% of the world’s smartphones. The company also licenses its chip designs to hundreds of companies globally that use the designs to develop their own chips.
Nvidia believes Arm needs more than an IPO to help with its growth. Instead, Nvidia said it would welcome Qualcomm’s help in creating new products and technologies for Arm.
Qualcomm’s stock price is up by less than 1% since the news broke out, while Nvidia’s stock is also up by less than 1% since the market opened.
This article was originally posted on FX Empire
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