Arm Holdings (ARM) recently considered acquiring UK-based Alphawave, which supplies semiconductor intellectual property, but decided not to proceed after initial talks with the company, Reuters reported Tuesday, citing unnamed sources familiar with the matter.

Alphawave has been exploring a sale amid takeover interest from potential acquirers like Arm, one of the sources told Reuters.

Arm approached Alphawave with the aim of acquiring its technology that determines how fast information can get onto and off a chip, which is crucial for artificial intelligence, Reuters reported.

Arm and Alphawave did not immediately respond to MT Newswires' requests for comments.

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