In a purchase that may shake up the smartphone manufacturing landscape, Nvidia Corp. announced Sunday, September 13 it had agreed to purchase Arm Ltd. from SoftBank Group Corp. for $40 billion. The deal will see Nvidia, a U.S.-based tech firm that specializes in the design of graphics-processing chips, with Arm, which designs processor architecture key to the operation of small computers like smartphones. Softbank, a Japanese technology conglomerate, purchased Arm in 2016 for $32 billion.
The move is likely to make a stir among smartphone manufacturers. Arm owns and license a set of instructions that almost all smartphone companies lease and base their own chips on. Phones produced by Apple, Huawei, Samsung and Qualcomm all use Arm-based chips, which are simpler than traditional processing units but draw less power.
The current terms of the agreement, scheduled to close by March 2022, will see Nvidia pay Softbank $21.5 billion in stock