Nvidia Corp. agreed on buying SoftBank Group Corp.’s chip division Arm Ltd. for $40 billion, which will give some control of the most widely used electronics technology in the semiconductor industry.

Nvidia will pay $21.5 billion valued stocks and a cash consideration of $12 billion to the U.K.-based chip designer, including a $2 billion signing payment. The company in a statement on Sunday said that the SoftBank might receive an additional $5 billion in cash or stock if the Arm’s performance meets specific targets. An additional of $1.5 billion will be paid to the employees of Arm in Nvidia stock.

The Arm has independently created a successful niche for itself, and fierce rivals such as Apple, Samsung Electronics Co., Intel, Qualcomm Inc., Broadcom Inc. and Huawei Technologies Co. are all licensees. The licensees either use Arm’s designs as the basis of their chips or through licensing instruction set, the fundamental code which is used by the processors to communicate with software for proprietary efforts.

Jensen Huang, CEO of Nvidia said in an interview, “It’s a company with a reach that’s just unlike any company in the history of technology”. He further added, “We’re uniting Nvidia’s leading AI computing with Arm’s vast ecosystem.”

Nvidia announced that it will keep Arm’s headquarters in the U.K. and will invest further in AI research, educating customers and providing a place for the experimentation of robotics and automation. Huang said the acquisition would add benefit to the U.K.’s technology footprint rather than detracting from it.