Huawei and Qualcomm breathe a sigh of relief after Nvidia failed to buy ARM and had to pay $1.25 billion


In August 2020, Nvidia announced that it would buy ARM for $40 billion.For this acquisition, Nvidia Huang is also confident that it will be successful, regulators will agree.But this message receiving, the industry is an objection, like qualcomm, apple, Google, amazon, tesla, samsung, mediatek, broadcom, huawei, Intel, Microsoft and other large companies have concerns about nvidia change the business model of ARM, everybody says that if a acquisition, for the chip industry, would be a tragedy.ARM’s model is to authorize all chip enterprises and does not produce chips by itself, so as to ensure its own fairness and justice.Nvidia, which makes chips itself, competes with many other chipmakers, so there are concerns that a takeover of ARM would ensure fairness.However, for Chinese manufacturers such as Huawei, Unigron and Feiteng, they are more worried about whether the authorization will be affected once ARM is acquired and becomes an American enterprise. After all, we all know how severe the external situation is.Since then, there hasn’t been much progress in the acquisition of ARM by Nvidia. After all, there are too many regulations involved, so all kinds of opinions keep coming out.In recent days, news has emerged that Nvidia has privately and with its partners that it no longer expects the deal to close.SoftBank is also preparing for a public offering of ARM, meaning it has no hope of acquiring the company.Those who had previously opposed this, such as Huawei, Qualcomm, Google, Intel and Microsoft, should be relieved to hear the news, which will not affect the current competitive landscape.Of course, Nvidia itself is licensed by ARM, the launch of ARM chip products is not affected.In August 2020, Nvidia’s stock was around $135. It peaked at more than $300 in more than a year, and is still around $220 today.Nvidia’s market cap, which used to be around $340 billion, has risen to $550 billion, up nearly $210 billion, or $1.3 trillion in YUAN.Of course, it’s not all about the impact of the ARM acquisition, but there is definitely an impact, so Nvidia can still afford to lose $1.25 billion.

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