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Softbank’s Sale Of Chip Manufacturing Arm To Nvidia For $66B Collapses

US and EU-based regulators made serious objections to Softbank’s deal especially regarding the effects such a sale can have on the global semiconductor industry.

Softbank's Sale Of Chip Manufacturing Arm To Nvidia For $66B Collapses

Japan-based Softbank was ready to make the largest microchip deal in history, through the sale of Arm, its UK-based chip manufacturer. But, as per the latest reports, the planned sale to Nvidia has fallen through. US and EU-based regulators made serious objections to the sale, especially regarding the effects such a sale can have on the global semiconductor industry. In light of these objections, Nvidia has backed out from the Softbank’s deal which was reported at $66 billion.

Softbank will still be receiving $1.25 billion as compensation, but it is nothing compared to the planned sale amount. If Nvidia had successfully made the purchase they would have given them massive control over chip production and supply. Some of the biggest tech giants such as Microsoft and Qualcomm rely on a range of products from Arm.

The biggest effect of this deal falling through will be felt the most by Arm. There will also be a change taking place at the chief executive level. Nvidia shares saw a massive surge recently, and this would have been the perfect opportunity for Softbank to make the big digit sale. Now, they plan to list the company publicly in New York.

Nvidia wanted to capture what would be the entire supply chain ecosystem in the chip sector. But, with a global shortage in chips, a monopoly over the major manufacturer would have been dangerous for the stock markets. So, the gaming and IT giant pulled out of the deal, leaving Softbank with no other option than to list Arm publicly. Softbank clearly wants to shed Arm, and this would have been the golden opportunity for them to do so. However, with the large range of objections, no such deal is going to take place anytime soon.

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