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Great Britain announced a $40 billion annexation ARM, but China can say no

via:博客园     time:2020/9/14 21:15:20     readed:604


Wen / Xiao Xiao

Source: Qbits (ID:QbitAI)

Once successful, it will be the biggest acquisition ever by the chip industry.

Chip giant Nvidia announced today (September 14) that:

For $40 billion, or 270 billion yuan, Softbank Corp.'s chip design firm will be bought for ARM.

For this, the ARM owne

NVIDIA is ARM perfect partne

Moreover, the CEO Simon Segars of the ARM stated that:

ARM and Nvidia share a common vision and passion

Furthermore, Simon Segars said he and the management team were happy to join Aviva and write the next chapter together.

As soon as the news came out, Softbank Corp. shares received a lot of bills, resulting in a suspension of trading.

It is understood that the deal is expected to be completed within 18 months, but like Qualcomm and Enzipu mergers and acquisitions, it needs regulatory approval from the UK, China, the European Union and the United States.

However, there is no doubt that the acquisition is a shock to the semiconductor industry and the AI chip industry.

Softbank Corp.:$32 billion purchased ,$40 billion released

Four years ago, softbank bought it for $32 billion ARM, and now sells it to nvidia for $40 billion.


According to the terms of the deal approved by the board of directors of Aviva, Softbank Corp. and ARM, the $40 billion will be paid in stock plus cash.

Of that amount, the stock was worth $21.5 billion and cash was $12 billion, including $2 billion in advance payments made at the time of the signing.

Also, there is $5 billion to be determined, and the remaining $1.5 billion will be paid to ARM employees in the form of Nvidia shares.

That is, Softbank Corp. will hold a stake in Aviva, but less than 10 percent.

For the acquisition, Nvidia CEO Wong said:

Huang said in an interview with Forbes that the first thing after the acquisition was to combine Yingwei's advanced artificial intelligence technology with ARM huge customer network.


However, once the acquisition is successful, it will have a big impact on the semiconductor industry.

Impact of domestic and foreign industries

as a chip design company ,90% as a chip design company, and Apple, Qualcomm, Samsung, Huawei and other companies use its IP to authorize the manufacture of smartphone chips.

Previously, ARM co-founder Hermann Hauser said it would be a disaster for ARM ARM, as its competitors would start looking for ARM alternatives.


If the acquisition is completed, not only ARM, domestic and foreign manufacturers will be affected.

According to some netizens, this is probably the best thing that happened to the RISC-V this year :-).


Under these circumstances, after all, a ARM vendor might choose to optimize CPU code upgrade performance, or upgrade the instruction set by itself and switch to an open source instruction set RISC-V..(Agencies

Domestic market:

The domestic first wave, is obtains the ARM V8 instruction set authorization manufacturer, including the Huawei, the flying Teng and so on.

A set of instructions used in CPU to calculate and control a computer system. Whether the instruction set is advanced or not is related to the performance of CPU and is an important embodiment of CPU performance.

Huawei, Feiteng and other manufacturers based on V8 instruction set authorization, self-design CPU. If Aviva's successful acquisition ARM, is affected by the U.S. ban, domestic manufacturers may not be able to continue to obtain upgraded instruction set authorization.

Furthermore, the pressure on Huawei shoulders may increase further.

Last May, the Commerce Department's Bureau of Industry and Security (BIS) announced strict restrictions on Huawei use of U.S. technology, software to design and manufacture semiconductor chips.

TSMC, Qualcomm, Samsung and SK Hercules and Micron will no longer supply chips to Huawei after the ban comes into effect on September 15.

However, Nvidia's official commitment will continue to maintain its ARM headquarters in the UK and further expand its brand image.

Foreign markets:

Furthermore, the impact on foreign manufacturers is no small, the first is Intel (Intel).

As a large chip factory, Intel independently R & D, manufacturing and sales of chips, the entire chip production process independently completed.

But ARM only license technology to other chip makers, charging a small licensing fee, with its low-power processors occupying a place in the mobile terminal chip market.

If Nvidia completes its acquisition of ARM, Intel's future may be even more difficult.


Also, some netizens speculated whether it would affect Apple's deal with ARM.


Such an acquisition doesn't really bring long-term benefits

Aviva Commitment: Maintain ARM Open License Model

At this point, Nvidia officials have responded, promising to continue to maintain ARM open licensing model and customer neutrality.

But netizens don't seem to buy it.

Netizens said that Nvidia itself is a very low level of open source and cross-platform friendliness, if you do, it is a disaster.

That's terrible. Of all the big tech companies, Nvidia is probably the least friendly to open source and cross-platform comparability. For me, their goal is to monopolize AI hardware over the next 20 years, just as Intel has effectively monopolized cloud hardware over the past 20 years

However, some netizens speculated that the UK will not allow any non-EU countries to own the core technology, so there are also variables in the UK except China.


The British will never let foreigners acquire their core technology.

Yes. Restricting sales to non-EU countries is due to security concerns

To succeed, China has to agree

In the end, the "biggest merger in chip history" would not be so easy to succeed.

Because oligopolistic mergers and acquisitions are a matter of market competition, mergers and acquisitions require the consent of regulators in major market countries and are all say yes.

In accordance with the provisions of the State Council of China concerning the criteria for centralized reporting by operators:

Article 3 Where a business operator concentrates on meeting one of the following criteria, the business operator shall declare in advance to the competent department of commerce under the State Council, and shall not implement the centralization it fails to do so:

(1) the total global turnover of all operators involved in the concentration in the previous fiscal year was more than RMB 10 billion, and the turnover of at least two of them in China in the previous fiscal year was more than RMB 400 million;

(2) The total turnover of all operators involved in the concentration in China in the last fiscal year was more than RMB 2 billion, and the turnover of at least two of them in China in the last fiscal year was more than RMB 400 million.

Certainly, both ARM and aviva meet this standard, and china is one of its main and largest markets.

So this acquisition, like Qualcomm and Enzipu's previous $44 billion acquisition, must be approved by China.

Variables will also have, and in the face of TikTok and other encounters, this variable will only be more difficult to measure.

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