Nvidia acquisition of ARM may be Paused

1215

In October 2020, US Processing Chip maker Nvidia revealed it is going to invest $40 billion in UK based SoftBank owned ARM to capture the surging market for semi conductors more precisely.

ARM that is now owned by the Japanese Conglomerate announced in December 2020 that it is going to be part of the Nvidia from May 2021, if all goes well as expected.

However, in April this year, UK Culture Secretary Oliver Dowden asked the Competition and Markets Authority (CMA) to figure out the pros and cons related to the deal and inquired whether the deal could be deemed as anti-competitive in nature and could pose as a threat to national security, as most of the smart phones and internet of things working in UK were working on the ARM Processors.

CMA came up with a detailed investigative report that essayed worried implications if ARM LTD was acquired by US Company Nvidia. This included over 3k jobs moving to the Biden led nation, leaving the UK populace jobless.

UK has made no decision on the merger and said that it needs further examination of the deal to pass on the order on whether it could go on as per the previous plan.

NVIDIA released a press statement saying that the company will abide by the regulator process conducted by the government of UK and is expecting the matter to be resolved by September 2021.

A spokesperson from the US Chip maker also cleared the air that ARM will work like an independent company even after the takeover and the 3k UK staff will be kept while keeping the headquarters of the silicon wafer producer in Cambridge, UK.

Ad
Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

No posts to display