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World news – The takeover of Nvidia-Arm is to be investigated by the UK and the EU

The European Union (EU) and the UK are preparing to investigate the acquisition of Cambridge-based chip maker Arm by tech giant Nvidia.

The European Union (EU) and the UK are preparing to investigate the acquisition of Cambridge-based chip maker Arm by tech giant Nvidia.

The deal was originally announced in September 2020 when GPU maker Arm acquired SoftBank from the Japanese conglomerate for USD 40 billion.

Nvidia cited a desire to create « the world’s leading computer company for the AI ​​age » as the reason for the acquisition and used the Arms Computing ecosystem to do so.

In January, the UK However, the competition and market regulator announced that they would begin investigating the deal.

According to the Financial Times, competition officials from the EU and the UK will now investigate the deal. The investigation is at a preliminary stage and Brussels has yet to submit official documents. It was reported in the publication that one person with knowledge of the situation said that « an audit can lead to a ban ».

There have been concerns that some of Nvidia’s rivals currently using Arm’s technology could be negatively impacted if the deal goes through. However, Jensen Huang, CEO of Nvidia, told the Financial Times that the company « has no intention of restricting or refusing to ship Arm to a customer. »

The US Federal Trade Commission can also initiate its own investigation into the acquisition, with an investigation also expected in China.

« Arm is one of the UK’s most important technology companies and is in the fore in terms of chip design Heart of the geopolitical landscape. It is therefore not surprising that both the UK and EU competition authorities want to investigate Nvidia’s $ 40 billion offer for arm.

« It was noteworthy that the company was already three weeks after Brexit. Referendum could so easily be taken over by Softbank in 2016. Almost five years later, the UK and other nations recognized the tremendous potential and importance of the semiconductor industry and explained why Arm is such an important asset.

“The UK is currently debating the newly proposed National Security and Investment Law, which will give the government more powers to evaluate overseas acquisitions. It is clear that advanced technologies play an important role in economic growth, innovation, security and privacy. Hence, we should expect a higher level of scrutiny to ensure that these important transactions are proceeding properly.  »

Read More: Nvidia Acquires Arm From SoftBank For $ 40 Billion In AI Key Bid.

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Ref: https://www.verdict.co.uk

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