Industry insiders say Samsung Electronics SK Hynix is ​​unlikely to acquire ARM

Nvidia’s $40 billion acquisition of Arm was announced on September 13, 2020, due to major regulatory challenges, and ultimately ended in failure. SoftBank Group, the owner of Nvidia and Arm, On February 14 this year, it announced the termination of the acquisition transaction. Although Nvidia has terminated the acquisition, Arm, which has a huge influence in the global chip field, is still the target of acquisition or investment by many companies. Intel CEO Pat Kissinger said in an interview before that if there is a consortium, they will May be very willing to get involved in some way.

Media said in the report that in addition to Intel, which is interested in participating, Samsung Electronics, SK Hynix, Qualcomm, and other manufacturers are also considered to be the most likely companies to acquire Arm.

However, some Korean media reported that Arm is becoming less attractive to be acquired, and industry insiders believe that Samsung Electronics and SK Hynix are unlikely to be acquired.

For Samsung Electronics, industry insiders believe that they are vigorously developing the foundry business and that fabless manufacturers are their main customers. The OEM of chips designed by these customers, the acquisition of Arm is not as useful as they think. Some industry insiders said that global fabless manufacturers rely on Arm's intellectual property to design chips. If Samsung Electronics acquires Arm, they may terminate their cooperation with Samsung Electronics for fear of leaking trade secrets.

The challenge of anti-monopoly supervision is also the reason why industry insiders believe that Samsung Electronics and SK Hynix cannot acquire Arm, and Nvidia also gave up the acquisition because of this. Foreign media also mentioned in the report that the UK still regards the cross-border acquisition of Arm as a technology leak.

Although the acquisition is impossible, foreign media mentioned in the report that Samsung Electronics and SK Hynix also have rationality considerations for the acquisition of Arm. They believe that Arm's business scope can directly make up for the weaknesses of the Korean semiconductor industry. In Korea, semiconductor manufacturing is much more developed than design and packaging.

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