Arm Holdings, owned by SoftBank, recently considered acquiring UK-based semiconductor intellectual property supplier Alphawave to secure crucial technology for developing its own artificial intelligence processors. The focus was on Alphawave's serializer-deserializer (SerDes) technology, vital for high-speed data transfer on AI chips. However, after initial talks, Arm decided not to pursue the acquisition. Alphawave, valued at £707.1 million ($913.36 million), had been exploring a sale following this and other acquisition interests. Despite not manufacturing chips themselves, Arm provides essential building blocks and intellectual property, generating revenue via licensing and royalties. The company has been seeking ways to enhance its profit margin and revenue, including the possibility of designing and selling its own chips. Developing SerDes technology from scratch would require significant expertise and time, highlighting the value Arm saw in Alphawave's advanced capabilities.
