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The sale of British chip company ARM to rival Nvidia hits a big hurdle

Nvidia’s planned acquisition of British chip designer ARM for $ 40 billion (€ 34 billion) is after British regulators discover that it could damage competition and undermine rivals. I ran into a big hurdle yesterday and needed a longer investigation.

On the track last September, the world’s largest manufacturer of graphics and AI chips contracted with the UK’s most important tech company, causing a quick backlash from politicians, rivals and customers.

In the UK as well, political criticism has been criticized that ARM owned by Japan’s Softbank should not be resold from 2016 due to rising economic nationalism and growing awareness of the need to own major infrastructure. It has been.

UK competition regulators have added pressure, saying the merged entity can reduce competition in markets, data centers, the Internet of Things, automobiles, games and other sectors around the world.

In order to pass the deal with the impact on serious competition, regulators will usually demand the disposal of some of the merged businesses that have the power to harm their rivals. However, concerns about ARM and Nvidia are business-wide.

The deal also warned that it poses a threat to the innovation of the industry that forms the backbone of the modern economy.

“Nvidia, which controls ARM, can pose serious problems for Nvidia’s rivals by limiting access to key technologies and ultimately hindering innovation across many important and growing markets. I’m worried about the nature, “said Andrea Coscelli, head of the Competitive Markets Department.

ARM is a leading player in global semiconductors, the underlying field of technology from artificial intelligence and quantum computing to 5G communication networks. Its design powers almost every smartphone and millions of other devices.

Semiconductors also underpin the UK’s key infrastructure, and the government states that semiconductors are in technology related to defense and national security issues.

The deal also caused anger in the semiconductor industry. ARM was a neutral player who licensed key intellectual property to other otherwise fierce rivals such as Qualcomm, Samsung Electronics and Apple.
A concern among chip companies is that Nvidia will have early access to Arm innovations rather than distributing them equally across the industry.

Nvidia provided remedies to mitigate the impact, but UK regulators didn’t expect them to mitigate their concerns.

Nvidia, hoping to close the deal by March next year, said Wednesday that it was taking longer than expected to get the necessary approvals, and some U.S.-based analysts said the deal was taken. He said he believed he would be thwarted. The contract deadline is September next year.

Nvidia said yesterday that it believes the merger agreement will be beneficial to the industry and will help create jobs.

The sale of British chip company ARM to rival Nvidia hits a big hurdle

Source link The sale of British chip company ARM to rival Nvidia hits a big hurdle

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