Nvidia officially announced the cancellation of the $ 40 billion Arm acquisition, revealing the reason behind

After a series of leaks and reports that the most valuable acquisition in the history of the semiconductor industry is likely to fall apart, Nvidia today officially announced the cancellation of the acquisition. Arm worth $40 billion. At the same time, Nvidia also revealed the reason behind.

Back in September 2020, Nvidia announced a $40 billion deal to acquire the industry’s most influential chip design company, Arm, from owner Softbank. However, in the process of finalizing this agreement, Nvidia has found many challenges and regulatory hurdles from regulators related to antitrust.

This morning, Nvidia made an official announcement on its website, announcing the termination of the agreement to acquire Arm. Nvidia said that both companies made efforts and good faith to complete the deal.

“I expect Arm to be the most important CPU architecture for the next decade,” said Nvidia founder and CEO Jensen Huang. That shows that being able to own Arm will bring a lot of advantages to Nvidia, especially in the competition with rivals like Qualcomm, Apple or even Intel.

Nvidia revealed the reasoning behind was due to “significant regulatory challenges”. After the deal was announced, a number of US and European regulators expressed concerns and may take action against the deal.

That’s because Arm is so important in today’s semiconductor industry. Arm’s chip architecture is used in all smartphones, game consoles and personal computers. Companies like Apple, Qualcomm, Samsung or Mediatek all depend on Arm.

Therefore, the fact that Nvidia owns Arm while it is a leading graphics chip manufacturer, will have a huge impact on the semiconductor industry. In contrast, the current Softbank owner is not a semiconductor chip maker, so it has no influence over the industry. Softbank will also receive $1.25 billion in compensation from Nvidia.

Reference: androidauthority