Sunday, December 5

More problems for the purchase of ARM from Nvidia: the European Union will investigate the operation

Nvidia’s acquisition of ARM runs into yet another obstacle later of the notice from the British authorities. From Reuters we read that the European Union is about to investigate the purchase, arguing that it could lead to higher prices and less diversity of options for consumers.

The future of the acquisition, put in (even more) doubt

The agency believes that Nvidia “has not offered enough concessions” to ARM for the purchase, even after stating that it would allow ARM to continue as a neutral supplier for other brands. Not for nothing Samsung, Apple or Qualcomm base their current chip architectures on ARM.

This is what Margrethe Vestager, European Commissioner for Competition, has to say about it:

“Although Nvidia and ARM do not compete directly with each other, ARM’s intellectual property is an important part of Nvidia’s competing products such as those used in data centers, in cars and on the ‘Internet of Things’. Our analysis shows that Nvidia’s acquisition of ARM could degrade or restrict access to ARM ownership, with effects in many markets where semiconductors are used “

Nvidia has offered $ 54 billion for ARM and it is supported by companies such as Broadcom, MediaTek or Marvell. But with government agencies investigating the operation, it is put on hold until the green light is given to make it happen. And that is if the green light is given.

For that we will have to wait until March 15, 2022, which will be when the European Union provides the results of its investigation and decides whether to let the purchase happen or prevent it and keep ARM away from Nvidia.

Image | Christian Lue