As of late July 2021, the UK Competition and Markets Authority (CMA) was reviewing how Nvidia’s $40 billion acquisition of ARM affects competition, justice and national security. Noisy Bloomberg UK authorities tend to reject the deal after completing the review.
the News agency refers to government sources. Consequently, the CMA sees national security as endangered by Nvidia’s acquisition of ARM. The UK has to give the green light as ARM’s headquarters are in Cambridge. The digital minister, Oliver Dowden, ordered a more detailed examination. More investigations will now follow.
The ARM processor architecture is found in all modern smartphones and is essential for the expansion of 5G mobile networks, among other things. Companies can license the base ARM architecture or specific CPU core designs to integrate into their own processors.
CEO of ARM for acquisition
ARM is currently owned by Japanese investor Softbank. Nvidia’s acquisition plans are causing a stir because the company competes directly with other ARM licensees. Google, Microsoft and Qualcomm, among others, have already raised concerns.
the ARM boss Simon Segars wrote in a blog post in early July 2021 voted in favor of the acquisition by Nvidia. According to this, Nvidia would invest significantly in the British location and ARM would open new doors to the world of artificial intelligence to position itself there more broadly.
As an alternative to the acquisition of Nvidia, an initial public offering would be conceivable, in which licensees such as Samsung and Qualcomm would participate. According to Segars, with an IPO, the “pressure to achieve near-term revenue growth and profitability would affect the ability to invest, expand, move quickly and innovate.”
However, the Dutch semiconductor equipment supplier ASML has been proving for years that the principle can work: ASML is the only company that manufactures systems that expose silicon wafers with extreme ultraviolet (EUV) wavelengths, which are necessary for the most complex production processes. modern from 7 nanometers. All major chipmakers such as Intel, Samsung, and TSMC have held shares in ASML since 2012 and thus influence development.
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