According to Alan Priestley, Gartner’s semiconductor analyst, it seems increasingly unlikely that Nvidia will be able to acquire British chip design firm Arm for $ 40 billion.
CNBC According to the expert, the transaction is increasingly being investigated worldwide and concerns have been raised in the UK, the EU, the US and China. “I think it is very unlikely that they will be completed,” he said of the deal. at the time
Arm was divested in 1990 from an early computer company called Acorn Computers. The company’s energy-saving chip designs are used in 95 percent of the world’s smartphones and 95 percent of the chips designed in China. The company, which was acquired by Japan’s SoftBank for £ 24bn ($ 32bn) in 2016, licenses its chip designs to more than 500 companies that use them to manufacture their own semiconductors.
Critics fear that a merger with Nvidia, which designs its own chips, could limit access to Arm’s ‘neutral’ semiconductor designs and lead to higher prices, less choice and less innovation in the industry. However, Nvidia argues that the deal will lead to more innovation and Arm will benefit from the increased investment.
While US chip giant Broadcom has been in favor of the deal, many others are opposed to it. Rival Qualcomm said Nvidia could limit Arm’s technology offerings to competitors or raise prices. According to Bloomberg, Google and Microsoft have raised the same concerns with regulators.
Nadine Dorries, Minister for Digital and Culture, has ordered the deal ‘2. phase ’examination. The Competition and Market Surveillance Authority’s investigation will take 24 weeks to address antitrust and national security concerns
In the United States, the Federal Trade Commission has also expressed concerns about the transaction. Nvidia said in its fourth quarter earnings report that it is in talks with the authority on “remedies to address the concerns.” Meanwhile, the European Commission, the EU’s executive body, launched its own in-depth investigation into the transaction in October.
“Although Arm and Nvidia are not in direct competition with each other, Arm’s IP “Our analysis shows that the acquisition of Arm by Nvidia could lead to a restriction or deterioration of access to Arm’s intellectual property, which could have a distorting effect in many markets where semiconductors are used,” he said. Margrethe Vestager, Executive Vice-President of the European Commission, in a statement. And in China, the state-sponsored Global Times said the deal was “disturbing” and called on regulators to handle it with caution, CNBC summarized.
reports that the U.S. Federal Trade Commission (FTC) has filed an action to block the acquisition on the grounds that the transaction is anti – competitive. The FTC argues (reiterating previous objections) that the merger would allow Nvidia to control the supply of chips and designs used by competitors, which would undermine competitors and stifle innovation in various technology markets such as cloud, data centers and in autonomous cars
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