The American company "Nvidia" acquired the British chip design company, "Arm Holdings", for an amount of about $ 40 billion.
Nvidia, the largest US chip maker by market value, and ARM, said on Monday that Oli will buy a British chip designer from SoftBank Group for $ 40 billion in a deal that will reshape the global semiconductor industry.
The deal is expected to put a vital resource for Apple and many other companies in the sector under the control of a single player, and it is likely to face opposition from regulators and Nvidia's competitors.
As for SoftBank, the deal is an early exit from ARM, which it had bought just 4 years ago for $ 32 billion, according to Reuters.
The deal includes $ 21.5 billion in shares, and Nvidia will pay Softbank $ 12 billion in cash, including two billion when signed.
Under the deal, SoftBank and the $ 100 billion Vision Fund, which has a 25 percent stake in ARM, will get between 6.7 and 8.1 percent in Nvidia.
Nvidia CEO Jensen Huang said the deal, which boosts the data center chips sector in his company, supports competition, adding, "The industry will see, for the first time in its history, a real alternative to Intel Corp's dominance of the sector."
With the prospect of opposition looming, Huang said he would maintain ARM's neutral licensing model and expand it by granting Nvidia IP licenses as well for the first time.
It is noteworthy that the British company does not produce the chips, but rather sells licenses for the technology used to manufacture them.
Arm licenses its chip designs and technology to customers including Qualcomm, Apple and Samsung Electronics, and Apple's next Mac computers will use ARM chips.
Huang said the deal would not subject Aram to US export restrictions.
The deal requires regulatory approvals from Britain, the United States and China, and may be subject to strict scrutiny in China, where hundreds of companies, including Huawei, use ARM technology.
The deal to buy the Arm is expected to be completed in March 2022.