UK chip company ARM’s sale to rival Nvidia hits big hurdle

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Nvidia’s planned acquisition of UK chip designer ARM for $ 40 billion (€ 34 billion) comes after UK regulators discovered it could hurt competition and undermine rivals. I ran into a big obstacle yesterday and needed a longer investigation.

On track last September, the world’s largest graphics chip and AI maker signed a contract with the UK’s largest tech company, prompting a swift reaction from politicians, rivals and customers.

In the UK, too, political critics have come under fire that ARM owned by Japanese firm Softbank is not expected to be resold from 2016 due to rising economic nationalism and growing awareness of the need to own major infrastructure. He was.

UK competition regulators have stepped up the pressure, saying the merged entity can reduce competition in markets, data centers, Internet of Things, automobiles, gaming and other industries across the globe .

In order to push through the deal with the impact on serious competition, regulators will generally demand the divestiture of some of the merged companies that have the power to harm their rivals. However, concerns about ARM and Nvidia are company-wide.

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

“Nvidia, which controls ARM, can pose serious problems for Nvidia’s competitors by limiting access to key technologies and ultimately hampering innovation in many important and growing markets. I am worried about nature, ”said Andrea Coscelli, head of the competitive markets department.

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

Semiconductors also underpin the UK’s key infrastructure, and the government says semiconductors are in a technology related to defense and national security concerns.

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

Nvidia provided solutions to mitigate the impact, but UK regulators weren’t expecting them to ease their concerns.

Nvidia, hoping to complete the deal by March of next year, said on Wednesday it was taking longer than expected to get the necessary approvals, and some US-based analysts said the deal had been concluded. He said he believed he would be thwarted. The contract deadline is September of next year.

Nvidia said yesterday that it believes the merger deal will benefit the industry and help create jobs.

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