Qualcomm latest to object to Nvidia-Arm deal
Acquisition could make it difficult for chipmakers to access Arm’s IP
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Nvidia’s $40bn proposed acquisition of the UK-based chip designerArmhas already come under scrutiny from regulators and now US chipmakerQualcommhas weighed in on the deal.
The company is against the acquisition and it recently voiced its concerns to the US Federal Trade Commission, the European Commission, the UK’s Competition and Markets Authority and China’s State Administration for Market Regulation. However, theCompetition and Markets Authorityas well as theEuropean Commissionhave both already launched investigations into the matter.
Meanwhile, the FTC’s investigation has moved to a “second phase” and the regulator has asked SoftBank,Armand Nvidia to provide more information on the deal, according to two sources that spoke withCNBC.
Providing the information needed by the FTC will likely take some time as several large documents will need to be produced and the regulator will also ask other companies about the deal before making its decision.
Qualcomm’s objection
Qualcomm decided to contact regulators around the world regarding theNvidia-Arm dealbecause it believes they will end up playing a significant role in whether or not it gets approved.
However, in a statement toCNBC, Nvidia explained that it is confident regulators will come to see the benefits of the acquisition once their investigations are complete.
Arm’s chip designs are currently used in 95 percent of the world’s smartphones and Qualcomm and other chipmakers worry that it will be much more difficult using the company’s intellectual property if the acquisition ends up getting approved.
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Qualcomm isn’t the only chipmaker objecting to the deal though as theAIchip startupGraphcorehas also raised concerns with the UK’s Competition and Markets Authority.
We won’t know if Nvidia will be able to acquire Arm until regulators finish their investigations and this process could certainly take some time due to the implications of allowing theGPUmaker to acquire the chip designer.
ViaCNBC
After working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches and ransomware gangs to the best way to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home.
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