[HN Gopher] Qualcomm wants to buy ARM and it may need Samsung's ...
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       Qualcomm wants to buy ARM and it may need Samsung's help
        
       Author : walterbell
       Score  : 45 points
       Date   : 2022-06-05 03:26 UTC (19 hours ago)
        
 (HTM) web link (www.sammobile.com)
 (TXT) w3m dump (www.sammobile.com)
        
       | raverbashing wrote:
       | So is this going to be like the Java purchase where nobody sees
       | the value in the thing until someone comes and turns it into a
       | cash cow?
        
         | bcit-cst wrote:
         | Is Java a cash cow for oracle?
        
           | hirako2000 wrote:
           | It won't last long but yes. Recent anecdote, we purchases 1
           | or 2 years of licenses for the oracle JVM across thousands of
           | hosts to give us time to migrate "properly and safely" to
           | openJDK. Migration has very high man power and risks costs,
           | Oracle knew it very well before their purchase of Sun.
        
       | diogenescynic wrote:
       | Qualcomm is a glorified patent troll, so this would not be great.
        
       | newsclues wrote:
       | Seems like a good candidate for an international consortium of
       | industry and government to acquire ARM .
        
       | rektide wrote:
       | I'd prefer Nvidia, were I forced to pick a torture to endure.
       | 
       | See: "Qualcomm shook down the cell phone industry for almost 20
       | years"[1] (and then the 9th District let em them away with it,
       | the dogs!).
       | 
       | [1] https://arstechnica.com/tech-policy/2019/05/how-qualcomm-
       | sho... https://news.ycombinator.com/item?id=31557324 (251 points,
       | 3 days ago, 125 comments)
       | https://news.ycombinator.com/item?id=20055517 (528points, 3 years
       | ago, 300 comments).
        
         | amelius wrote:
         | Does it matter which company, though, given that they are run
         | by humans who might change jobs or retire?
         | 
         | And isn't greed what drives most non-technical upper-management
         | folks, because "greed" is what they are hired for?
        
           | stormbrew wrote:
           | "All companies are greedy so all choices are pointless" is a
           | pretty nihilistic perspective. Do you really think every
           | company engages in all the same practices that are
           | identically detrimental to the commons? I'm almost as far
           | from a fan of capitalism as you can get and even I don't
           | think that.
        
             | sfe22 wrote:
             | You somehow believe that having only one corporation will
             | yield better results for the society, instead of many
             | companies competing in a free market? (Where you can also
             | compete if you think your better)
        
               | stormbrew wrote:
               | I'm having trouble seeing how you got from my post to
               | this question, so I'm really not sure how to answer it.
        
               | sfe22 wrote:
               | You said you are far from being fan of capitalism. Free
               | market means as many companies as needed. The opposite is
               | one company only controlling everything, most commonly
               | irl in form of communism.
        
               | stormbrew wrote:
               | The opposite of a vacuum is the center of a black hole,
               | and yet we manage to live in neither.
               | 
               | At any rate a deeper conversation about this would go
               | pretty far off topic, so I'm going to leave your strawmen
               | and conflation of several different ideas and axes into
               | one binary choice alone.
        
               | sfe22 wrote:
               | Yeah that's why i said believe in. Whether you tend to
               | believe if fewer is better, or more is better. To me it
               | seemed like you belong to the former, and thats why i
               | made a specific question which you are actively avoiding
               | answering.
        
               | hirako2000 wrote:
               | His point is rather that given competition allows certain
               | for profit enterprises to do more right than others hence
               | giving us choice we better make use of to let/get the
               | greedy fringe (or majority of them) out.
        
               | sfe22 wrote:
               | I have no problem with that. My response was in his
               | statement that he does not believe in free markets.
        
               | stormbrew wrote:
               | Not a he or him, thanks.
        
               | sfe22 wrote:
               | Sure thing. You are just as welcome.
        
           | mlyle wrote:
           | > Does it matter which company, though, given that they are
           | run by humans who might change jobs or retire?
           | 
           | Eh, if you have an existing big organizational apparatus
           | built around IP extortion... you may be more of a danger than
           | someone else who'd need to tool up.
        
           | akira2501 wrote:
           | Yes, because companies can "own" property. The fact that
           | humans change jobs or retire inside one has no impact on
           | this.
           | 
           | Greed may be what they are selected for, but I don't think
           | it's necessarily obvious that's what drives them. It's also
           | not necessarily obvious that this is the most robust
           | mechanism to achieving sustained success.
        
           | smoldesu wrote:
           | FWIW, greed is what drives ARM right now anyways. People seem
           | to forget that ARM is not a community-owned endeavor.
        
             | mlyle wrote:
             | There's different business models behind greed, though.
             | 
             | You can be an innovator running a license business, with a
             | "friendly" stance towards licensees as you work to grow a
             | massive market. ARM's mostly played this game.
             | 
             | Or, you can be a rent-seeking, litigation-happy shop that
             | seeks to acquire many types of IP to force all market
             | participants to license from you; unilaterally determine
             | payments based on ability to pay; and threaten to tie up
             | indefinitely in litigation anyone who doesn't pay the
             | extortion. This has been Qualcomm's bread and butter.
             | 
             | Or, anywhere inbetween.
        
               | smoldesu wrote:
               | I don't really think there's much of a difference,
               | contextually. ARM still collects rent, and most of their
               | "innovation" is contributed by their licencees. Pretty
               | much the only thing ARM can peddle at this point is their
               | core designs and ISA, and both of those things are
               | starting to show their age now. Maybe 10 years ago ARM
               | had a "friendly" stance towards their customer base, but
               | nowadays they're frankly no better than Qualcomm. If you
               | want to make a usable ARM computer today, you need to
               | have ISA extensions out-of-the-box and _probably_ design
               | your own cores unless you want to saddle your customers
               | with 8x M53 's.
               | 
               | I agree that not all of these companies are equal, but
               | ARM right now reminds me of Intel in 2016. You can only
               | rest on your laurels for so long, sufficiently motivated
               | competitors will be sure to remind you again and again.
        
               | mlyle wrote:
               | > Maybe 10 years ago ARM had a "friendly" stance towards
               | their customer base, but nowadays they're frankly no
               | better than Qualcomm.
               | 
               | I'm sick of this kind of comparison, like I detail here:
               | https://news.ycombinator.com/item?id=31578523
               | 
               | Qualcomm systematically shook down everyone in entire
               | industries with a web of technologies, threatening "well,
               | even if you didn't use ____, you'll also violate ____ and
               | ____. And, we'll cut off your access to important chips
               | in ___, ___ ,and ___."
               | 
               | Between the two, ARM is an _absolute pleasure to work
               | with_.
               | 
               | > If you want to make a usable ARM computer today, you
               | need to have ISA extensions out-of-the-box and probably
               | design your own cores
               | 
               | Samsung just moved from proprietary cores in flagships to
               | Cortex-X + A710 + A510. Ditto for Snapdragon 8. Graviton
               | is using ARM Neoverse-N1/N2. Actual cores from ARM proper
               | are a bigger share of usage than almost anytime before,
               | with Apple being the main remaining exception.
        
               | smoldesu wrote:
               | I think we'll have to agree to disagree, then. I don't
               | think your other comment was right either: people
               | typically give Apple more scrutiny because
               | 
               | A. they are the larger company
               | 
               | and
               | 
               | B. they have much more of our personal data than Meta
               | does
               | 
               | In this case, I think the comparison is apt because the
               | only thing that matters is if the current IP owners are
               | abusing their power. In this case, I think ARM and
               | Qualcomm would wind up to be about equally as tyrannical.
               | If you think ARM's slate is clean, you should read into
               | the neverending drama that is ARM China. Nobody is
               | necessarily good here.
        
               | mlyle wrote:
               | > If you think ARM's slate is clean, you should read into
               | the neverending drama that is ARM China. Nobody is
               | necessarily good here.
               | 
               | I don't understand how having a regional subsidiary going
               | off the rails on their own has anything to do with the
               | typical experience of a licensee.
        
               | klelatti wrote:
               | > Pretty much the only thing ARM can peddle at this point
               | is their core designs and ISA, and both of those things
               | are starting to show their age now.
               | 
               | Not sure what else you expect Arm to be 'peddling' given
               | this is and basically always has been their business.
        
       | Shadonototra wrote:
       | I hope not, Qualcomm's strategy is to stagnate with inefficient
       | chips
       | 
       | I was hoping Apple would buy them or AMD
       | 
       | With Qualcomm, ARM will die
        
         | wyldfire wrote:
         | > Qualcomm's strategy is to stagnate with inefficient chips
         | 
         | What do you mean? Seems like they're constantly trying to catch
         | up with Apple's chips.
        
           | Shadonototra wrote:
           | countless number of chips, no significant improvements over
           | the generations and expensive af
           | 
           | and since Apple M1 came out 2 years ago, they are still
           | unable to offer equivalent
        
             | Moral_ wrote:
             | Well they just purchased Nuvia and are expected to ship
             | Nuvia based cores in 2023 so we should see if they've
             | caught up.
        
             | wyldfire wrote:
             | > and since Apple M1 came out 2 years ago, they are still
             | unable to offer equivalent
             | 
             | The fact that they can't keep up with their big competitor
             | doesn't seem like evidence that they deliberately want
             | things to stagnate.
             | 
             | IIRC Apple is an architectural licensee but Qualcomm is not
             | (though they were ~6 years ago). Back in the day,
             | Qualcomm's designs were probably more competitive than the
             | reference ones are today.
             | 
             | Disclosure: I'm a Qualcomm employee.
        
         | Mikeb85 wrote:
         | > I was hoping Apple would buy them
         | 
         | God I hope not. Apple would try to prevent everyone else in the
         | industry from using ARM IP and would lead to either a schism in
         | ARM architectures or everyone jumping on something else (maybe
         | that's what would get RISC-V to take off?).
        
           | petre wrote:
           | > maybe that's what would get RISC-V to take off?
           | 
           | Export controls to China alone will do it.
        
           | Shadonototra wrote:
           | Why would they? they would face backslash and probably an
           | investigation
           | 
           | I'd hope they contribute for a better ARM ecosystem for
           | everyone using their experience crafting M1
        
         | samwillis wrote:
         | Apple have a perpetual architecture license from ARM, and
         | having significantly expanded from it they have no reason to
         | purchase ARM (other than to be anticompetitive)
        
       | tester756 wrote:
       | Why ARM company is this important?
        
       | dcchambers wrote:
       | ELI5: After the Nvidia deal fell through, why does Qualcomm think
       | they have a shot? What makes them different in the eyes of US
       | regulators? I'd argue they're business is more monopolistic than
       | Nvidia.
        
       | [deleted]
        
       | panda88888 wrote:
       | Don't think this will ever fly. According to [^0] Qualcomm has
       | 38% of the Mobile AP (application processor) market including
       | apple, which is mostly if not all ARM. Exclude apple (they don't
       | sell chips), and it is 50%.
       | 
       | [^0] https://news.strategyanalytics.com/press-releases/press-
       | rele...
        
         | ksec wrote:
         | ARM's IP is much broader than just Mobile AP.
         | 
         | It is also worth pointing out the percentage you quote is
         | Revenue Share, not unit volume. Qualcomm's AP business isn't
         | exactly in as good position as many think it is.
        
         | bediger4000 wrote:
         | The current antitrust doctrine is immediate harm to consumers.
         | Apparently only 1 quarter of lower prices is enough to decide
         | no harm. I don't think antitrust prevents this.
        
       | ljhsiung wrote:
       | Title is pretty out of context. From TFA
       | 
       | > Qualcomm would be interested in forming a consortium of sorts
       | to acquire ARM. "We're an interested party in investing,"
       | 
       | Relatedly, the CEO has mentioned that ARM going public would make
       | him buy a bunch of shares, given his faith in the continued
       | success of ARM. As is the case of any "bull case".
       | 
       | Forming a consortium or buying public shares is not, as the title
       | implies, a singular company buying ARM.
        
         | Juicyy wrote:
         | Why dont they go public? after the nvidia fell through i cant
         | imagine qualcomm acquiring them. It seems like ARM is in a
         | really strong position for the next decade or two. Would be an
         | instant BUY rating by most brokers IMO.
        
           | kd913 wrote:
           | >It seems like ARM is in a really strong position for the
           | next decade or two.
           | 
           | What? They just had a massive layoff which culled 15% of
           | their staff?
           | 
           | In this climate, no way in hell they would be rated as an
           | instant buy.
           | 
           | Their revenue growth and revenues in general are tiny what
           | $2.8 billion, and mostly restricted to licensing/royalties.
           | 
           | They were gonna be bought by nvidia for what 40-60 billion
           | dollars?
           | 
           | They are also competing in the space with massive players a
           | la Nvidia, AMD, Intel who are looking to eat their lunch.
           | 
           | The landscape is shifting by adopting the Big Little
           | structure, adding more core counts, and a much bigger
           | prioritization towards dedicated accelerator offload cards.
           | Not to mention an increase in prioritization to RISC V.
           | 
           | I wouldn't put them as an instant BUY.
        
           | infinityio wrote:
           | Definitely for the next few years, but who knows - RISC-V is
           | catching up scarily fast from what I can tell
        
             | iainmerrick wrote:
             | Where is RISC-V being used? Do they have some notable
             | recent design wins?
        
               | mlyle wrote:
               | For the most part, RISC-V is being crammed into SOCs for
               | low-end functionality where you'd have to pay ARM a
               | license fee. There's a massive technical alliance with
               | thousands of members and many such SOCs being made.
               | 
               | Wins in SOCs are things like Google's Titan M2 in Pixel
               | 6, or inside various Seagate storage ASICs-- or NVIDIA's
               | stated intent to replace the Falcon controller CPU in all
               | of their products with RISC-V.
               | 
               | Yes, it's just a few percent of the embedded processor
               | market, and all the current microcontroller use is very
               | low end right now.
        
               | xxpor wrote:
               | Isn't NVIDIA's new firmware controller chip on their
               | cards (the one that allows you to use the new open source
               | linux drivers) RISC-V as well?
        
               | mlyle wrote:
               | Yes-- that's the Falcon / now NV-RISCV.
               | https://www.techpowerup.com/291088/nvidia-unlocks-gpu-
               | system...
               | 
               | Of course, if NVIDIA ever does actually acquire ARM, that
               | might change architectures again.
        
           | nazgulsenpai wrote:
           | Not sure why you're being downvoted for asking a reasonable
           | question but yes, I do think going public would probably be a
           | bad end and shift focus toward immediate returns for
           | shareholders.
        
           | Sakos wrote:
           | Please no. Publicly trading companies creates one of the
           | worst incentives for poor long-term business decisions. ARM
           | is the kind of company that we can't as a society afford to
           | become short-term profit oriented.
        
         | eqvinox wrote:
         | Depending on the participants and mechanics, a consortium could
         | actually be the best long-term outcome, in regards to ARM.
         | 
         | (I'd still rather not have Qualcomm and their "business(tm)
         | practices" involved...)
        
       | pharmakom wrote:
       | Can someone explain why instruction sets are not open and free to
       | use?
       | 
       | Feels like paying for a programming language (from a software
       | guy's perspective)
        
         | eshch wrote:
         | once noone replies, i'll share my understanding, but i didn't
         | have any experience with that i think because they can (demand
         | money from anyone due to intellectual property).
         | 
         | i'm not sure if anyone have challenged it. or i may be wrong
         | and basically they can enforce their demands based on usage of
         | their brand only. or noone really has needed that, because
         | everyone is happy to collaborate with the arm company in some
         | other areas besides licensing, so this very fee is nothing for
         | them.
        
       | adventured wrote:
       | If you were ARM's competitors, and or otherwise wanted to see ARM
       | weakened to open up supposed market opportunities, one of the
       | best ways to do it would be to form a consortium ownership, in
       | which ARM will suffocate. The added bureaucracy and distractions
       | will damage ARM, it stands zero chance of coming back out of that
       | arrangement as good of a company as it was going in (the group
       | will endlessly bicker, as it erodes operationally they'll begin
       | discussing changing the ownership arrangement, as some of the
       | owners will want it to actually succeed - that move will come too
       | late to matter much).
        
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