Nvidia to Buy Mellanox for $6.8 Billion in Data Center Push
Published Date | 2019 March 13
U.S. chip maker Nvidia's will buy Israeli chip designer Mellanox Technologies beating rival Intel in a deal that would help the company to boost its data center business and fuel the silicon carbide wafer market.Global: Nvidia Corp agreed to buy chip maker Mellanox Technologies for $6.8 billion, gaining expertise to help it push into the growing market for data center components. Nvidia is paying $125 a share in cash for the American-Israeli company, which makes chips used to speed the flow of information across computer servers. Nvidia’s biggest-ever acquisition is aimed at accelerating momentum. The company's built a multi-billion-dollar business in less than three years by persuading owners of data centers that his graphics chips are the right solution for processing the increasingly large amounts of information needed for artificial intelligence work, such as image recognition. “The data center is more important than ever,” Huang said in an interview. Nvidia won a bidding process, beating out rivals including Intel. Mellanox’s market value, now at about $5.9 billion, started to run up last year when activist investors took stakes and talk that it was up for sale emerged. According to the BlueWeave Consulting, Silicon carbide wafers have excellent heat and voltage resistance which make it widely used for semiconductors. Silicon carbide wafer characteristics in electrical devices like polishing materials include a petroleum base to assist the long-lasting lubricant break down into small pieces with sharp edges will play a major in the growth of silicon carbide wafer market. The growing reams of data generated means work on AI and large databases need to be split between multiple computers. Simply using a faster processor isn’t enough. To compact with this, data centers in the future will be built as though they are single giant computers “with tens of thousands of compute nodes,” requiring inter-connections that let them work in parallel. All power devices, electrical & electronics devices are containing major constituent silicon carbide wafers which have features such Best-in-class transient characteristics, high band gap means to manage high-temperature power, low power consumption, reduced lattice mismatch, significantly high thermal conductivity will contribute in the growth of global silicon carbide market over the forecast period. According to BlueWeave consulting’s upcoming report, Titled-“Global Silicon Carbide Wafer Market, by Product Type (2 Inch, 4 Inch, 6 Inch), by Applications (Power Device, Electronics & Optoelectronics, wireless Infrastructure), by Region (North America, Europe, Asia Pacific, Middle East & Africa and Latin America); Size and Forecast, 2019-2025,” The global Silicon Carbide Wafer market is estimated to grow at a significant rate, during the forecast period 2019-2025. The Silicon Carbide wafers remarkably scale back energy loss throughout electric power control, significantly contributing to the reduction of energy use and environmental stress. The increasing demand for low power consumption, improved energy efficiency in power devices, LED lighting, and telecommunications will boost the global silicon carbide market in the upcoming year. Further, government initiatives for renewables power light and awareness among people for more using of LED lights and solar lights and electrification in rural areas will increase the Silicon Carbide wafer market.