SoftBank May Not Want Nvidia to Bite Off Its Arm

Chip powerhouse Nvidia has the means to buy the semiconductor designer Arm from SoftBank, but there may be a better match.

Nvidia might want a deal for Arm, but SoftBank and its chairman Masayoshi Son may have better alternatives.

Photographer: Akio Kon/Bloomberg

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Nvidia Corp. has the money and motive to buy British chip designer Arm Ltd. But as much as Arm’s parent SoftBank Group Corp. may be open to a transaction, this particular combination may not be its first choice.

Santa Clara, California-based Nvidia, a leading maker of graphics processing units, has in recent weeks approached SoftBank about a deal for Arm, Bloomberg News reported on Wednesday. A takeover would be the biggest ever of a semiconductor company, even after a five-year, $270 billion spree of industry consolidation.