United Kingdom on Tuesday ordered an in-depth investigation into the proposed Nvidia to buy from the British chip developer Arm to the japanese group SoftBank for 50,000 million dollars, given the concerns about possible monopolistic practices and gaps in National security.
The secretary of Digital Affairs, Nadine Dorries, said the Competition and Markets Authority (CMA) de Britain will investigate the proposal over the next six months, adding to the scrutiny already underway in Europe and China.
“Arm has a unique place in the supply chain of global technology and we must ensure that the implications of this transaction are fully considered, “he said.
“The CMA will now inform me about competition and national security and provide advice on the next steps to take.”
Nvidia Corp, the world’s largest maker of graphics and artificial intelligence chips, agreed to buy Arm a SoftBank in September 2020 for up to $ 40 billion in cash and shares, prompting an agitated reaction from Arm’s clients, many of whom are competing with the American company.
Arm’s technology is used by chipmakers such as Qualcomm, Samsung Electronics and Apple to produce their own processors.
Nvidia is committed to maintaining the neutrality that has been critical to Arm’s success, with 180 billion chips shipped to date and technology that is in nearly every market. smart phones.
Nevertheless, United Kingdom He said that while not all devices using Arm-based chips are necessarily classified as critical in and of themselves, the security and resilience of supply chains is important to the UK’s national security.
Nvidia said it planned to address the CMA’s initial concerns about competition, which the regulator first noted in August, and that it would continue to work with the British government on the deal.
“The process of Phase 2 It will allow us to demonstrate that the transaction will help accelerate Arm and drive competition and innovation, including in the UK, “said a company spokesman.
An increase in Nvidia’s share price raised the value of the deal to more than $ 50 billion. The company’s papers yielded 0.6% in the first operations in Wall Street, pushing down the main indicators in New York.
Reference-www.eleconomista.com.mx