The UK government is planning on investigating Nvidia’s acquisition of ARM Holdings over national security concerns. The deal between the two firms is worth over 40 billion US Dollars.
According to a Reuters report, UK Digital minister Oliver Dowden stated that he has issued an intervention notice over the sale of ARM by Japan’s SoftBank Group to Nvidia. The official further added that “As a next step and to help me gather the relevant information, the UK’s independent competition authority will now prepare a report on the implications of the transaction, which will help inform any further decisions.” On the other hand, Nvidia has said that it believes that the deal will not pose any material threat to the UK’s national security issues.
Nvidia also added that “We will continue to work closely with the British authorities, as we have done since the announcement of this deal.” For those unaware, ARM is a chip designer and a major player in the semiconductor industry. Its designs and technologies have been used in nearly every smartphone and has even powered various other forms of devices as well. These semiconductors are a critical part of a nation’s infrastructure and even tie in with departments like Defense and communications.
Thus, it is a matter of national security, which is why the UK government is stepping in to intervene. Back in September 2020, Nvidia had pledged that, regardless of the deal, ARM will remain neutral and has even offered guarantees to retain its headquarters and staff in Cambridge. However, Nvidia owning ARM also implies that a single firm controls a key supplier that offers silicon designs to other chip makers.
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