Last Updated: Sept. 29, 2020 at 1:23 p.m. ET
Critics cite national security, homegrown technology, and jobs among concerns surrounding SoftBank’s sale of Arm to Nvidia
The U.K. government is assessing the impact of Nvidia’s $40 billion takeover of Arm, as pressure for it to intervene and protect the Cambridge-based chip maker grows.
It comes amid a growing backlash against the deal, as shareholders, politicians and industry experts raise concerns over national security, the loss of crucial homegrown technology, and key roles to a foreign buyer.
The Santa Clara, California-based graphics chip giant announced a deal on Sept. 13 to buy Arm from its current owner, SoftBank of Japan, in a move designed to transform the global semiconductor landscape.
Arm’s chips are used worldwide to help power mobile device processors for companies including Apple, Amazon, Samsung and Qualcomm.....MUCH MORE
Critics of the deal have warned that Arm’s acquisition by Nvidia, which recently overtook Intel to become the world’s most valuable chip maker, will place too much dominance in one company’s hands.
The deal still needs to gain approval from regulators in a number of countries, including the U.S., the U.K., and China, and in the European Union.
What has Nvidia promised?
Nvidia has pledged to keep Arm’s headquarters in Cambridge and expand its research and development presence in the English city, including building an artificial intelligence and education center.
It said it will not change Arm’s business model of licensing its designs to customers, and Nvidia has promised to add its own technology to the portfolio of intellectual property that Arm can license.
When SoftBank acquired Arm in 2016, it made legally binding assurances that the headquarters would stay in Cambridge, and to double the company’s U.K workforce over five years....
Also at MarketWatch:
Opinion: Nvidia’s deal with Arm paves the path to a trillion-dollar market value
Related:
"Arm co-founder starts ‘Save Arm’ campaign to keep independence amid $40B Nvidia deal" (NVDA)
Cambridge Tech Grandee Hermann Hauser Says Selling ARM to Nvidia Would Be a Disaster
"Nvidia Buying Arm Would be Reckless"
