ARM: UK-based chip designer sold to Nvidia

UK-based computer chip designer ARM Holdings is sold to American graphics chip specialist Nvidia.

ARM technology is at the heart of most smartphones, among many other devices.

Nvidia said the acquisition would create “the premier computing company for the age of artificial intelligence” (AI).

“ARM will continue to be based in Cambridge,” added a statement from the US firm’s chief executive, Jensen Huang.

“We will expand this large site and build a world-class AI research facility, supporting developments in healthcare, life sciences, robotics, self-driving cars and other fields.”

But two of the company’s co-founders had also raised other issues about the acquisition.

Hermann Hauser and Tudor Brown had suggested that ARM should remain “neutral”, rather than be owned by a company like Nvidia, which produces its own processors.

The concern is that there would be a conflict of interest as ARM’s clients would become dependent on a business with which many also compete for sales.

Furthermore, the two co-founders also claimed that once ARM was owned by an American company, Washington could attempt to prevent Chinese companies from using its knowledge as part of a broader trade conflict between the countries.

ARM creates computer chip designs that others then customize for their own purposes. It also develops instruction sets, which define how the software controls the processors.

It is based in Cambridge but also has offices around the world, including a joint venture in Shenzhen, China.

Hundreds of companies license their innovations, including Apple, Samsung, Huawei, and Qualcomm.

When Softbank acquired ARM, it promised to keep the company’s UK headquarters and increase the number of local jobs, which it did.

California-based Nvidia surpassed Intel to become the world’s most valuable chipmaker in July.

Until now, it has specialized in high-end graphics processing units (GPUs). These are commonly used by gamers to deliver more detailed images, as well as by professionals for tasks including scientific research, machine learning, and cryptocurrency “mining.”

But Nvidia is also one of ARM’s customers, which uses its designs to create its Tegra line of computer processing units (CPUs).