Possible purchase of ARM by Nvidia - what does it mean for the market

Rumors that Nvidia is in talks with Softbank to buy their stake in ARM have turned into reality, which means that the electronics market may change irreversibly. To understand this deal and the pitfalls, you need to look at what ARM is for the current market today. I am sure that you have a smartphone, which means that you use ARM products, in particular, the processor of your device is built on their cores. Even if you have an iPhone with a Bionic processor, then it's ARM. If you have a Qualcomm processor, then it is still an ARM processor. The ARM architecture dominates the smartphone market, and their chips are also used in smartwatches, tablets, and laptops. One of the first projects for computers was Windows for ARM, this year Apple plans to show its MacBooks running on ARM processors. It is difficult to overestimate the penetration of ARM technologies in the market; the opposite situation is more likely here. In 2019, 22.8 billion chips were shipped worldwide, each using the ARM architecture.

Despite ARM's dominance in the market, the company remained independent of any players that produced electronics. In 2016, the Softbank investment group acquired the company for $32 billion, but the strategy has not changed in any way, all licensees continued to receive access to ARM technologies on a transparent, non-discriminatory basis.

As part of America's trade war against China, US politicians have imposed a slew of sanctions banning the supply of American technology to Huawei and a number of other companies. It was supposed to be a death blow to Huawei, but it didn't happen. Along the way, it turned out that ARM does not fall under US laws, it remains an independent player in every sense. And at the same time, he controls the future of the electronics market, although he does not experience any political ambitions, he remains equidistant from any squabbles. A possible purchase of ARM by Nvidia will turn the company into a player that restricts access to technology, as it is obliged to follow the sanctions of the US government.

The deal itself should be completed in 18 months, the companies have officially announced its parameters. Softbank is selling ARM for $40 billion, of which $21.5 billion is paid in Nvidia shares, $12 billion in cash ($2 billion at the time of signing the contract), and part of the payment is attributed to ARM indicators. The deal has not been discussed with any regulator in the UK, where ARM is headquartered, or elsewhere. Approval of the transaction must be obtained from antitrust authorities in the US, Britain, the European Union and China. And this is where the biggest question arises, as Nvidia management says that ARM will remain independent and will not be subject to US restrictions in any way, in particular, will not be subject to US export controls. In my opinion, this is an attempt to get around sharp corners in this deal, when the head of Nvidia claims what he wants, but not at all what is real.

The political situation in the United States today is such that any options are being used to put pressure on China, sanctions are being imposed on dozens of companies, and monitoring of their compliance is extremely thorough. As part of this life-and-death struggle, it is hard to imagine that ARM, which has become controlled by an American company, will remain aloof from this. The desire of Nvidia is easily explained and understandable, but against the backdrop of big politics, these desires will not particularly excite anyone. Given the purchase of ARM, it is only a matter of time before sanctions will be imposed on Huawei and a number of other Chinese companies so that they do not have access to “American” technologies. This will inevitably happen, since the United States simply does not succeed in breaking Huawei as quickly as it was originally planned. Read about what Huawei is doing to resist the onslaught, they are doing quite interesting and extraordinary.

The independence of ARM was a fundamental advantage of the company, all licensees received the same conditions, they could compete on an equal footing. Within Nvidia, the use of ARM will enable breakthroughs in autonomous cars, data center processors, and the design of computer systems of the future. And all this is again under the control of an American company. Assurances that the open licensing model will not change, and the headquarters will remain in Britain, do not change the fact that this is only a wish, but not a reality at all. The change in ownership will give leverage to ARM, that's for sure.

But the problem here is much broader. It will be impossible to get rid of the idea that ARM provides better conditions for the parent company, provides quick access to developments, in a word, creates preferences. Even if this is not the case, it is almost impossible to prove the opposite. The thought of this will dominate the market, it will not be possible to remove this point from future discussions.

For Chinese companies that have embarked on a course of independence from American technology, as this is the key to future survival and success in the market, this deal looks like unpleasant news. In China, there is a subsidiary of ARM China, it sells the ARM architecture to local players, moreover, this is a joint venture. There are no developments in ARM China, this is an office that sells access to the parent company's patents. Nvidia will not get control of this company, the share will be insignificant. But the company itself does not mean anything, it is empty. Instead, you can open any other company that can sell licenses for ARM with some success.

Nvidia claims that it can, using the ARM licensing system, give access to its developments in the field of graphics, in theory, this will allow individual manufacturers to create solutions that compete with Nvidia on their architecture. Sounds encouraging, but the devil is in the details, you will need to carefully study exactly how and what will be subject to licenses. There are still more questions here, but the dropped phrase looks like plans from the distant future, and not what is happening here and now.

For Nvidia, the mobile market turned out to be a tough nut to crack, the company tried to gain a foothold in it, in 2008 Tegra chips for mobile devices appeared. A serious attack on the mobile device market happened in 2010, when Tegra 2 was shown at CES, several smartphones with it came out. But the perception in the market was far from ideal, and the manufacturers themselves were faced with the fact that sales of rather expensive and productive smartphones were far from predicted. Gradually, Tegra became history, although in fact this direction survived in automotive systems, but did not take root inside smartphones.

An article written ten years ago about the Tegra platform looks funny in the future, much of what Nvidia dreamed about never happened. And so the purchase of ARM looks like a second approach to the projectile. This does not mean at all that immediately after the deal, Nvidia will start producing smartphones, this path is just unlikely. On the rise of the system for data centers and clouds, there is GeForce Now, which is the most advanced gaming service in the clouds and has virtually no direct competitors. Where to apply the developments of ARM, there are niches in the market, in addition to smartphones, carts and a small cart. But will other players want to use ARM?

In fact, we can say that other manufacturers will actually have nowhere to go, they simply have no way out, and ARM is vital. And a few years ago, one could agree with such a statement and not even argue with it. But today, the US trade war against China has forced the latter to create all microelectronics industries domestically, including processor architecture. Is it possible to recreate ARM from scratch? I sincerely doubt that it will turn out well, since it is a huge investment of time and money. But if you start creating an ARM architecture with a number of changes and the people who worked at ARM will work on it? This is where everything becomes possible.

China has become a bounty hunter over the past few years. It is important to understand here that Chinese companies are poaching key employees from a huge number of American, European and Asian companies. And for the carriers of knowledge, the level of salaries becomes such that they are happy to change the flag. Money solves this issue effectively, and already inside China new technological stories are being built, which are based on old developments, but with their own approach. We can say that the world of electronics is rapidly dividing into those technologies that are available to American companies, and the approach of Chinese manufacturers.

I have no doubt that Chinese technology is at least five or six years behind, they will take a few steps back from the current level. But this is the beginning of a large industry for the development of microelectronics, and not just its production. And here China has a huge advantage, they know how to work and consistently build up their skills. Before our eyes, a new space race for the future of electronics is unfolding. And there will not be one winner in it, just America will lose its status as a non-alternative technology supplier, which, in my opinion, is not bad at all. We will have an alternative, there will be competition at the level of hardware, operating systems, applications. Until recently, no one wanted to create a competitor to ARM, there was no such political task, since only states are able to create companies of this magnitude. Now this challenge has come up as US actions force China /2007 and not only think about your own security, access to modern technologies, preferably your own. Who will win this race? Who will you bet on?

Possible purchase of ARM by Nvidia - what does it mean for the market

Rumors that Nvidia is in talks with Softbank to buy their stake in ARM have turned into reality, which means that the electronics market may change irreversibly. To understand this deal and the pitfalls, you need to look at what ARM is for the current market today. I am sure that you have a smartphone, which means that you use ARM products, in particular, the processor of your device is built on their cores. Even if you have an iPhone with a Bionic processor, then it's ARM. If you have a Qualcomm processor, then it is still an ARM processor. The ARM architecture dominates the smartphone market, and their chips are also used in smart watches, tablets, and appear in laptops. One of the first projects for computers was Windows for ARM, this year Apple plans to show its MacBooks running on ARM processors. It is difficult to overestimate the penetration of ARM technologies in the market; the reverse situation is more likely here. In 2019, 22.8 billion chips were shipped worldwide, each using the ARM architecture.

Despite ARM's dominance in the market, the company remained independent of any players that produced electronics. In 2016, the Softbank investment group acquired the company for $32 billion, but the strategy has not changed in any way, all licensees continued to receive access to ARM technologies on a transparent, non-discriminatory basis.

As part of America's trade war against China, US politicians have imposed a slew of sanctions banning the supply of American technology to Huawei and a number of other companies. It was supposed to be a death blow to Huawei, but it didn't happen. Along the way, it turned out that ARM does not fall under US laws, it remains an independent player in every sense. And at the same time, he controls the future of the electronics market, although he does not experience any political ambitions, he remains equidistant from any squabbles. A possible purchase of ARM by Nvidia will turn the company into a player that restricts access to technology, as it is obliged to follow the sanctions of the US government.

The deal itself should be completed in 18 months, the companies have officially announced its parameters. Softbank is selling ARM for $40 billion, of which $21.5 billion is paid in Nvidia shares, $12 billion in cash ($2 billion at the time of signing the contract), and part of the payment is attributed to ARM indicators. The deal has not been discussed with any regulator in the UK, where ARM is headquartered, or elsewhere. Approval of the transaction must be obtained from antitrust authorities in the US, Britain, the European Union and China. And this is where the biggest question arises, as Nvidia management says that ARM will remain independent and will not be subject to US restrictions in any way, in particular, will not be subject to US export controls. In my opinion, this is an attempt to get around sharp corners in this deal, when the head of Nvidia claims what he wants, but not at all what is real.

The political situation in the United States today is such that any options are being used to put pressure on China, sanctions are being imposed on dozens of companies, and monitoring of their compliance is extremely thorough. As part of this life-and-death struggle, it is hard to imagine that ARM, which has become controlled by an American company, will remain aloof from this. The desire of Nvidia is easily explained and understandable, but against the backdrop of big politics, these desires will not particularly excite anyone. Given the purchase of ARM, it is only a matter of time before sanctions will be imposed on Huawei and a number of other Chinese companies so that they do not have access to “American” technologies. This will inevitably happen, since the United States simply does not succeed in breaking Huawei as quickly as it was originally planned. Read about what Huawei is doing to resist the onslaught, they are doing quite interesting and extraordinary.

The independence of ARM was a fundamental advantage of the company, all licensees received the same conditions, they could compete on an equal footing. Within Nvidia, the use of ARM will enable breakthroughs in autonomous cars, data center processors, and the design of computer systems of the future. And all this is again under the control of an American company. Assurances that the open licensing model will not change, and the headquarters will remain in Britain, do not change the fact that this is only a wish, but not a reality at all. The change in ownership will give leverage to ARM, that's for sure.

But the problem here is much broader. It will be impossible to get rid of the idea that ARM provides better conditions for the parent company, provides quick access to developments, in a word, creates preferences. Even if this is not the case, it is almost impossible to prove the opposite. The thought of this will dominate the market, it will not be possible to remove this point from future discussions.

For Chinese companies that have embarked on a course of independence from American technology, as this is the key to future survival and success in the market, this deal looks like unpleasant news. In China, there is a subsidiary of ARM China, it sells the ARM architecture to local players, moreover, this is a joint venture. There are no developments in ARM China, this is an office that sells access to the parent company's patents. Nvidia will not get control over this company, the share will be insignificant. But the company itself does not mean anything, it is empty. Instead, you can open any other company that can sell licenses for ARM with some success.

Nvidia claims that it can, using the ARM licensing system, give access to its developments in the field of graphics, in theory, this will allow individual manufacturers to create solutions that compete with Nvidia on their architecture. Sounds encouraging, but the devil is in the details, you will need to carefully study exactly how and what will be subject to licenses. There are still more questions here, but the dropped phrase looks like plans from the distant future, and not what is happening here and now.

For Nvidia, the mobile market turned out to be a tough nut to crack, the company tried to gain a foothold in it, in 2008 Tegra chips for mobile devices appeared. A serious attack on the mobile device market happened in 2010, when Tegra 2 was shown at CES, several smartphones with it came out. But the perception in the market was far from ideal, and the manufacturers themselves were faced with the fact that sales of rather expensive and productive smartphones were far from predicted. Gradually, Tegra became history, although in fact this direction survived in automotive systems, but did not take root inside smartphones.

An article written ten years ago about the Tegra platform looks funny in the future, much of what Nvidia dreamed about never happened. And so the purchase of ARM looks like a second approach to the projectile. This does not mean at all that immediately after the deal, Nvidia will start producing smartphones, this path is just unlikely. On the rise of the system for data centers and clouds, there is GeForce Now, which is the most advanced gaming service in the clouds and has virtually no direct competitors. Where to apply the developments of ARM, there are niches in the market, in addition to smartphones, carts and a small cart. But will other players want to use ARM?

In fact, we can say that other manufacturers will actually have nowhere to go, they simply have no way out, and ARM is vital. And a few years ago, one could agree with such a statement and not even argue with it. But today, the US trade war against China has forced the latter to create all microelectronics industries domestically, including processor architecture. Is it possible to recreate ARM from scratch? I sincerely doubt that it will turn out well, since it is a huge investment of time and money. But if you start creating an ARM architecture with a number of changes and the people who worked at ARM will work on it? This is where everything becomes possible.

China has become a bounty hunter over the past few years. It is important to understand here that Chinese companies are poaching key employees from a huge number of American, European and Asian companies. And for the carriers of knowledge, the level of salaries becomes such that they are happy to change the flag. Money solves this issue effectively, and already inside China new technological stories are being built, which are based on old developments, but with their own approach. We can say that the world of electronics is rapidly dividing into those technologies that are available to American companies, and the approach of Chinese manufacturers.

I have no doubt that Chinese technology is at least five or six years behind, they will take a few steps back from the current level. But this is the beginning of a large industry for the development of microelectronics, and not just its production. And here China has a huge advantage, they know how to work and consistently build up their skills. Before our eyes, a new space race for the future of electronics is unfolding. And there will not be one winner in it, just America will lose its status as a non-alternative technology supplier, which, in my opinion, is not bad at all. We will have an alternative, there will be competition at the level of hardware, operating systems, applications. Until recently, no one wanted to create a competitor to ARM, there was no such political task, since only states are able to create companies of this magnitude. Now this challenge has come up as US actions force China /2007 and not only think about your own security, access to modern technologies, preferably your own. Who will win this race? Who will you bet on?

Possible purchase of ARM by Nvidia - what does it mean for the market

Rumors that Nvidia is in talks with Softbank to buy their stake in ARM have turned into reality, which means that the electronics market may change irreversibly. To understand this deal and the pitfalls, you need to look at what ARM is for the current market today. I am sure that you have a smartphone, which means that you use ARM products, in particular, the processor of your device is built on their cores. Even if you have an iPhone with a Bionic processor, then it's ARM. If you have a Qualcomm processor, then it is still an ARM processor. The ARM architecture dominates the smartphone market, and their chips are also used in smartwatches, tablets, and laptops. One of the first projects for computers was Windows for ARM, this year Apple plans to show its MacBooks running on ARM processors. It is difficult to overestimate the penetration of ARM technologies in the market; the opposite situation is more likely here. In 2019, 22.8 billion chips were shipped worldwide, each using the ARM architecture.

Despite ARM's dominance in the market, the company remained independent of any players that produced electronics. In 2016, the Softbank investment group acquired the company for $32 billion, but the strategy has not changed in any way, all licensees continued to receive access to ARM technologies on a transparent, non-discriminatory basis.

As part of America's trade war against China, US politicians have imposed a slew of sanctions banning the supply of American technology to Huawei and a number of other companies. It was supposed to be a death blow to Huawei, but it didn't happen. Along the way, it turned out that ARM does not fall under US laws, it remains an independent player in every sense. And at the same time, he controls the future of the electronics market, although he does not experience any political ambitions, he remains equidistant from any squabbles. A possible purchase of ARM by Nvidia will turn the company into a player that restricts access to technology, as it is obliged to follow the sanctions of the US government.

The deal itself should be completed in 18 months, the companies have officially announced its parameters. Softbank is selling ARM for $40 billion, of which $21.5 billion is paid in Nvidia shares, $12 billion in cash ($2 billion at the time of signing the contract), and part of the payment is attributed to ARM indicators. The deal has not been discussed with any regulator in the UK, where ARM is headquartered, or elsewhere. Approval of the transaction must be obtained from antitrust authorities in the US, Britain, the European Union and China. And this is where the biggest question arises, as Nvidia management says that ARM will remain independent and will not be subject to US restrictions in any way, in particular, will not be subject to US export controls. In my opinion, this is an attempt to get around sharp corners in this deal, when the head of Nvidia claims what he wants, but not at all what is real.

The political situation in the United States today is such that any options are being used to put pressure on China, sanctions are being imposed on dozens of companies, and monitoring of their compliance is extremely thorough. As part of this life-and-death struggle, it is hard to imagine that ARM, which has become controlled by an American company, will remain aloof from this. The desire of Nvidia is easily explained and understandable, but against the backdrop of big politics, these desires will not particularly excite anyone. Given the purchase of ARM, it is only a matter of time before sanctions will be imposed on Huawei and a number of other Chinese companies so that they do not have access to “American” technologies. This will inevitably happen, since the United States simply does not succeed in breaking Huawei as quickly as it was originally planned. Read about what Huawei is doing to resist the onslaught, they are doing quite interesting and extraordinary.

The independence of ARM was a fundamental advantage of the company, all licensees received the same conditions, they could compete on an equal footing. Within Nvidia, the use of ARM will enable breakthroughs in autonomous cars, data center processors, and the design of computer systems of the future. And all this is again under the control of an American company. Assurances that the open licensing model will not change, and the headquarters will remain in Britain, do not change the fact that this is only a wish, but not a reality at all. The change in ownership will give leverage to ARM, that's for sure.

But the problem here is much broader. It will be impossible to get rid of the idea that ARM provides better conditions for the parent company, provides quick access to developments, in a word, creates preferences. Even if this is not the case, it is almost impossible to prove the opposite. The thought of this will dominate the market, it will not be possible to remove this point from future discussions.

For Chinese companies that have embarked on a course of independence from American technology, as this is the key to future survival and success in the market, this deal looks like unpleasant news. In China, there is a subsidiary of ARM China, it sells the ARM architecture to local players, moreover, this is a joint venture. There are no developments in ARM China, this is an office that sells access to the parent company's patents. Nvidia will not get control over this company, the share will be insignificant. But the company itself does not mean anything, it is empty. Instead, you can open any other company that can sell licenses for ARM with some success.

Nvidia claims that it can, using the ARM licensing system, give access to its developments in the field of graphics, in theory, this will allow individual manufacturers to create solutions that compete with Nvidia on their architecture. Sounds encouraging, but the devil is in the details, you will need to carefully study exactly how and what will be subject to licenses. There are still more questions here, but the dropped phrase looks like plans from the distant future, and not what is happening here and now.

For Nvidia, the mobile market turned out to be a tough nut to crack, the company tried to gain a foothold in it, in 2008 Tegra chips for mobile devices appeared. A serious attack on the mobile device market happened in 2010, when Tegra 2 was shown at CES, several smartphones with it came out. But the perception in the market was far from ideal, and the manufacturers themselves were faced with the fact that sales of rather expensive and productive smartphones were far from predicted. Gradually, Tegra became history, although in fact this direction survived in automotive systems, but did not take root inside smartphones.

An article written ten years ago about the Tegra platform looks funny in the future, much of what Nvidia dreamed about never happened. And so the purchase of ARM looks like a second approach to the projectile. This does not mean at all that immediately after the deal, Nvidia will start producing smartphones, this path is just unlikely. On the rise of the system for data centers and clouds, there is GeForce Now, which is the most advanced gaming service in the clouds and has virtually no direct competitors. Where to apply the developments of ARM, there are niches in the market, in addition to smartphones, carts and a small cart. But will other players want to use ARM?

In fact, we can say that other manufacturers will actually have nowhere to go, they simply have no way out, and ARM is vital. And a few years ago, one could agree with such a statement and not even argue with it. But today, the US trade war against China has forced the latter to create all microelectronics industries domestically, including processor architecture. Is it possible to recreate ARM from scratch? I sincerely doubt that it will turn out well, since it is a huge investment of time and money. But if you start creating an ARM architecture with a number of changes and the people who worked at ARM will work on it? This is where everything becomes possible.

China has become a bounty hunter over the past few years. It is important to understand here that Chinese companies are poaching key employees from a huge number of American, European and Asian companies. And for the carriers of knowledge, the level of salaries becomes such that they are happy to change the flag. Money solves this issue effectively, and already inside China new technological stories are being built, which are based on old developments, but with their own approach. We can say that the world of electronics is rapidly dividing into those technologies that are available to American companies, and the approach of Chinese manufacturers.

I have no doubt that Chinese technology is at least five or six years behind, they will take a few steps back from the current level. But this is the beginning of a large industry for the development of microelectronics, and not just its production. And here China has a huge advantage, they know how to work and consistently build up their skills. Before our eyes, a new space race for the future of electronics is unfolding. And there will not be one winner in it, just America will lose its status as a non-alternative technology supplier, which, in my opinion, is not bad at all. We will have an alternative, there will be competition at the level of hardware, operating systems, applications. Until recently, no one wanted to create a competitor to ARM, there was no such political task, since only states are able to create companies of this magnitude. Now this challenge has come up as US actions force China /2007 and not only think about your own security, access to modern technologies, preferably your own. Who will win this race? Who will you bet on?

Possible purchase of ARM by Nvidia - what does it mean for the market

Rumors that Nvidia is in talks with Softbank to buy their stake in ARM have turned into reality, which means that the electronics market may change irreversibly. To understand this deal and the pitfalls, you need to look at what ARM is for the current market today. I am sure that you have a smartphone, which means that you use ARM products, in particular, the processor of your device is built on their cores. Even if you have an iPhone with a Bionic processor, then it's ARM. If you have a Qualcomm processor, then it is still an ARM processor. The ARM architecture dominates the smartphone market, and their chips are also used in smart watches, tablets, and appear in laptops. One of the first projects for computers was Windows for ARM, this year Apple plans to show its MacBooks running on ARM processors. It is difficult to overestimate the penetration of ARM technologies in the market; the reverse situation is more likely here. In 2019, 22.8 billion chips were shipped worldwide, each using the ARM architecture.

Despite ARM's dominance in the market, the company remained independent of any players that produced electronics. In 2016, the Softbank investment group acquired the company for $32 billion, but the strategy has not changed in any way, all licensees continued to receive access to ARM technologies on a transparent, non-discriminatory basis.

As part of America's trade war against China, US politicians have imposed a slew of sanctions banning the supply of American technology to Huawei and a number of other companies. It was supposed to be a death blow to Huawei, but it didn't happen. Along the way, it turned out that ARM does not fall under US laws, it remains an independent player in every sense. And at the same time, he controls the future of the electronics market, although he does not experience any political ambitions, he remains equidistant from any squabbles. A possible purchase of ARM by Nvidia will turn the company into a player that restricts access to technology, as it is obliged to follow the sanctions of the US government.

The deal itself should be completed in 18 months, the companies have officially announced its parameters. Softbank is selling ARM for $40 billion, of which $21.5 billion is paid in Nvidia shares, $12 billion in cash ($2 billion at the time of signing the contract), and part of the payment is attributed to ARM indicators. The deal has not been discussed with any regulator in the UK, where ARM is headquartered, or elsewhere. Approval of the transaction must be obtained from antitrust authorities in the US, Britain, the European Union and China. And this is where the biggest question arises, as Nvidia management says that ARM will remain independent and will not be subject to US restrictions in any way, in particular, will not be subject to US export controls. In my opinion, this is an attempt to get around sharp corners in this deal, when the head of Nvidia claims what he wants, but not at all what is real.

The political situation in the United States today is such that any options are being used to put pressure on China, sanctions are being imposed on dozens of companies, and monitoring of their compliance is extremely thorough. As part of this life-and-death struggle, it is hard to imagine that ARM, which has become controlled by an American company, will remain aloof from this. The desire of Nvidia is easily explained and understandable, but against the backdrop of big politics, these desires will not particularly excite anyone. Given the purchase of ARM, it is only a matter of time before sanctions will be imposed on Huawei and a number of other Chinese companies so that they do not have access to “American” technologies. This will inevitably happen, since the United States simply does not succeed in breaking Huawei as quickly as it was originally planned. Read about what Huawei is doing to resist the onslaught, they are doing quite interesting and extraordinary.

The independence of ARM was a fundamental advantage of the company, all licensees received the same conditions, they could compete on an equal footing. Within Nvidia, the use of ARM will enable breakthroughs in autonomous cars, data center processors, and the design of computer systems of the future. And all this is again under the control of an American company. Assurances that the open licensing model will not change, and the headquarters will remain in Britain, do not change the fact that this is only a wish, but not a reality at all. The change in ownership will give leverage to ARM, that's for sure.

But the problem here is much broader. It will be impossible to get rid of the idea that ARM provides better conditions for the parent company, provides quick access to developments, in a word, creates preferences. Even if this is not the case, it is almost impossible to prove the opposite. The thought of this will dominate the market, it will not be possible to remove this point from future discussions.

For Chinese companies that have embarked on a course of independence from American technology, as this is the key to future survival and success in the market, this deal looks like unpleasant news. In China, there is a subsidiary of ARM China, it sells the ARM architecture to local players, moreover, this is a joint venture. There are no developments in ARM China, this is an office that sells access to the parent company's patents. Nvidia will not get control over this company, the share will be insignificant. But the company itself does not mean anything, it is empty. Instead, you can open any other company that can sell licenses for ARM with some success.

Nvidia claims that it can, using the ARM licensing system, give access to its developments in the field of graphics, in theory, this will allow individual manufacturers to create solutions that compete with Nvidia on their architecture. Sounds encouraging, but the devil is in the details, you will need to carefully study exactly how and what will be subject to licenses. There are still more questions here, but the dropped phrase looks like plans from the distant future, and not what is happening here and now.

For Nvidia, the mobile market turned out to be a tough nut to crack, the company tried to gain a foothold in it, in 2008 Tegra chips for mobile devices appeared. A serious attack on the mobile device market happened in 2010, when Tegra 2 was shown at CES, several smartphones with it came out. But the perception in the market was far from ideal, and the manufacturers themselves were faced with the fact that sales of rather expensive and productive smartphones were far from predicted. Gradually, Tegra became history, although in fact this direction survived in automotive systems, but did not take root inside smartphones.

An article written ten years ago about the Tegra platform looks funny in the future, much of what Nvidia dreamed about never happened. And so the purchase of ARM looks like a second approach to the projectile. This does not mean at all that immediately after the deal, Nvidia will start producing smartphones, this path is just unlikely. On the rise of the system for data centers and clouds, there is GeForce Now, which is the most advanced gaming service in the clouds and has virtually no direct competitors. Where to apply the developments of ARM, there are niches in the market, in addition to smartphones, carts and a small cart. But will other players want to use ARM?

In fact, we can say that other manufacturers will actually have nowhere to go, they simply have no way out, and ARM is vital. And a few years ago, one could agree with such a statement and not even argue with it. But today, the US trade war against China has forced the latter to create all microelectronics industries domestically, including processor architecture. Is it possible to recreate ARM from scratch? I sincerely doubt that it will turn out well, since it is a huge investment of time and money. But if you start creating an ARM architecture with a number of changes and the people who worked at ARM will work on it? This is where everything becomes possible.

China has become a bounty hunter over the past few years. It is important to understand here that Chinese companies are poaching key employees from a huge number of American, European and Asian companies. And for the carriers of knowledge, the level of salaries becomes such that they are happy to change the flag. Money solves this issue effectively, and already inside China new technological stories are being built, which are based on old developments, but with their own approach. We can say that the world of electronics is rapidly dividing into those technologies that are available to American companies, and the approach of Chinese manufacturers.

I have no doubt that Chinese technology is at least five or six years behind, they will take a few steps back from the current level. But this is the beginning of a large industry for the development of microelectronics, and not just its production. And here China has a huge advantage, they know how to work and consistently build up their skills. Before our eyes, a new space race for the future of electronics is unfolding. And there will not be one winner in it, just America will lose its status as a non-alternative technology supplier, which, in my opinion, is not bad at all. We will have an alternative, there will be competition at the level of hardware, operating systems, applications. Until recently, no one wanted to create a competitor to ARM, there was no such political task, since only states are able to create companies of this magnitude. Now this task has appeared, since the actions of the United States are forcing China https://cars45.co.ke/listing/nissan/teana/2007 and not only to think about their own security, access to modern technologies, and preferably their own. Who will win this race? Who will you bet on?

I have no doubts that Chinese technologies will be at least five or six years behind, they will take several steps back from the current level. But this is the beginning of a large industry for the development of microelectronics, and not just its production. And here China has a huge advantage, they know how to work and consistently build up their skills. Before our eyes, a new space race for the future of electronics is unfolding. And there will not be one winner in it, just America will lose its status as a non-alternative technology supplier, which, in my opinion, is not bad at all. We will have an alternative, there will be competition at the level of hardware, operating systems, applications. Until recently, no one wanted to create a competitor to ARM, there was no such political task, since only states are able to create companies of this magnitude. Now this challenge has emerged as US actions force China https://cars45.co.ke/listing/nissan/teana/2007 https://cars45.co.ke/listing/nissan/teana/2007 and not only think about your own security, access to modern technologies, preferably your own. Who will win this race? Who will you bet on?