Arm is looking like a ripe takeover target. South Korean memory chip maker SK Hynix is considering whether to form a consortium of investors to acquire the British company.
According to Yonhap news agency (by Yahoo Finance) Park Jung-ho, vice president and CEO of SK Hynix, is quoted as saying, “We are looking into the possibility of forming a consortium, together with strategic partners, to jointly acquire it,” he went on to say, “No I believe that Arm is a company that can be bought by a company.” The comments came after the company’s annual general meeting of shareholders.
The news follows Nvidia’s Previous Failed Offer to Buy Arm after the US-based company faced major regulatory hurdles. The US Federal Trade Commission, the UK Competition and Markets Authority, the European Commission and the Chinese antitrust authority have all raised concerns about the acquisition. This led Nvidia to write off $1.36 billion as a result of the failed bid.
As a South Korean company, it remains to be seen how global regulators will view a potential offer. If a deal ends up happening, it won’t be finalized anytime soon.
Arm’s current owner SoftBank is preparing to list Arm on the Nasdaq exchange. Arm has become one of the leaders in the world’s semiconductor ecosystem. Chips based on Arm’s intellectual property are sold by many of the world’s largest technology companies. Not just the Apple and Samsung of the world, but in industries as diverse as cars, supercomputers and automation.
Some Arm analysts and licensees see Arm-based architectures dethroning x86 as the dominant PC architecture. Qualcomm certainly seems to think so. Qualcomm, known for its Snapdragon SoCs, says the company is “very well positioned to be the platform of choice for PCs in the inevitable transition to Arm”.