This article was first published in Deccan Chronicle. Views are personal.
Listening to Pivot podcast earlier this week, I came across this quote from Professor Scott Galloway, “Nvidia is the most impressive company you have never heard of”. Up until last week, I would have argued that you could make a stronger case for this statement to be applied to ARM Holdings. But considering that Nvidia bought ARM Holdings from Softbank this week, Prof Galloway is right.
In case you do not track the semiconductor space, there is a chance that you are yet to hear about this deal. Or in case you have heard about this, you do not understand why it is important. I discussed in a previous column that while we have been looking elsewhere in the past few months, the US and China have been involved in a high tech geopolitical rivalry around the semiconductor space. The US has been placing sanctions on Chinese companies. The most high profile of which resulted in cutting off Huawei’s access to the world’s leading foundry, making it harder for the Chinese giant to procure chips.