The impending sale of Arm Holdings Inc. to Nvidia Corp. for $40 billion could have broad implications for the global semiconductor industry, further boosting one of its highest fliers and lifting another major bet by SoftBank Group Inc.

The Japanese technology group said late Sunday it had reached an agreement to sell Arm to Nvidia in a mix of cash and stock, confirming a report in The Wall Street Journal on Saturday. nvidia

It will pay $21.5 billion in stock and $12 billion in cash. SoftBank.

Arm could also receive up to $5 billion in cash or stock if it meets its financial performance targets.Nvidia will also issue $1.5 billion in stock to Arm employees.

Nvidia, which makes graphics processors, and Arm, which designs the microprocessors that power most of the world’s smartphones, may not be household names, but they are among the biggest players in the chip industry.Nvidia’s stock has been one of the best performers in the market this year, and if combined, Nvidia would instantly elevate itself to a dominant force in the smartphone market and be the first company to emerge from the A large technology provider of a range of other devices from smart speakers to fitness trackers.

The deal, one of the largest semiconductor acquisitions ever, marks a victory for SoftBank and its chief executive Masayoshi Son, who bought Arm four years ago for $32 billion and has been trying to kick-start business growth.

For Nvidia CEO John Huang, it’s the biggest gamble he’s taken since he helped co-found the chipmaker in 1993. nvidia is a fast-growing industry player, best known for making graphics chips that power video games such as the wildly popular Nintendo Switch. due to blockades that keep people at home, such chips are in pandemics period has been on a hot streak.

An expanded version of this report appears on

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