Wednesday, September 30th 2020

China Could Reject NVIDIA-Arm Deal, Predicts Former Lenovo Chief Engineer

In big corporate mergers and acquisitions involving multi-national corporations, money is the easy part, with the hard part being competition regulators of major markets giving their assent. The NVIDIA-Arm deal could get entangled in the US-China tech trade-war, with Beijing likely to use its approval of the deal as a bargaining chip against the US. Former Lenovo chief engineer Ni Guangnan predicts that the Chinese government's position would be to try and fight the deal on anti-trust grounds, as it could create a monopoly of chip-design tools. China's main concern, however, would be Arm IP falling into the hands of a US corporation, the California-based NVIDIA, which would put the IP under US export-control regulations.

Both Arm and NVIDIA announced an agreement for the latter to acquire Arm from SoftBank in a deal valued at USD $40 billion. NVIDIA CEO has been quoted as calling it the "deal of the century," as it would put NVIDIA in control of the biggest CPU machine architecture standard after Intel's x86, letting it scale the IP from low-power edge SoCs, to large data-center processors. Chinese regulators could cite recent examples of US export controls harming the Chinese tech industry, such as technology bans over Huawei and SMIC, in its action against the NVIDIA-Arm deal. Arm's 200-odd Chinese licensees have shipped over 19 billion chips based on the architecture as of mid-September 2020.
Source: South China Morning Post
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59 Comments on China Could Reject NVIDIA-Arm Deal, Predicts Former Lenovo Chief Engineer

#29
demian_vi
lexluthermiesterEasily. China is the one nation who's objection will have the least impact and they know it. They can object, but then they just get left out in the cold by NVidia.

You stated that like you think we're villains. And you say that in the same context where we're discussing China. Irony.
no you are superheroes fighting the villains all around the world :laugh::laugh::laugh::laugh::laugh::laugh::laugh:
Posted on Reply
#30
moproblems99
Vayra86But China really hasn't got much to lean on here.
Not sure what authority they have? Isn't SoftBank Japanese? Why should anyone care what China has to say about it?
Posted on Reply
#31
windwhirl
moproblems99Not sure what authority they have? Isn't SoftBank Japanese? Why should anyone care what China has to say about it?
Probably because of this:
SlizzoARM China is a separate entity of ARM that is operated fairly independently.

Don't forget about this article that was posted here, guys.

www.techpowerup.com/270474/arm-china-goes-rogue-ex-ceo-blocking-the-business

I could see ARM China, easily, getting severed from the company outright for non-compliance.
Posted on Reply
#32
moproblems99
windwhirlProbably because of this:
Well, I can see them operating completely independently now.
Posted on Reply
#33
Sabishii Hito
lexluthermiesterYou stated that like you think we're villains. And you say that in the same context where we're discussing China. Irony.
There are no good guys in this. They're all villains to differing degrees.
Posted on Reply
#34
Unregistered
lexluthermiesterFair enough.


Again, you are vilifying. Not appropriate.

Absolutely incorrect. It would be perfectly appropriate.
Absolutely incorrect. It would be perfectly appropriate. why?
Posted on Edit | Reply
#35
Kohl Baas
FlankerI still don't understand why acquisitions like these need the approval of Chinese regulators?
You like ice cream, say, chocolate and vanilla. Your pal Charlie don't like you anymore and since he has the recipe for vanilla, he don't give you anymore. Your other pal Joe has the recipe of chocolate and giving you as much as you want, but lately he want to sell the recipe. If Charlie gets it, you won't get neither chocolate nor vanilla. So as long as you have any word on it, wouldn't you try to stop Charlie from buying the recipe?
lexluthermiesterYou stated that like you think we're villains. And you say that in the same context where we're discussing China. Irony.
I would like to speak with you about that. But I live in a world where speaking my mind in sot a wise thing to do. Everything you say and do can be used against you in the long run... With or without your permission, will and in most times without you being aware...
Posted on Reply
#36
Nkd
FlankerI still don't understand why acquisitions like these need the approval of Chinese regulators?
Because ARM is every where.
Posted on Reply
#37
the54thvoid
Super Intoxicated Moderator
Well, I hope someone blocks it. Folks in the know in Cambridge are questioning Nvidia's committments to the UK base. SoftBank protected that, there are questions lingering over the new owner.
Posted on Reply
#38
Xaled
Although Nvidia is US-Based. Blocking this deal by China would be for the benefit and good of the whole world, including USA. Let's hope they block it for eberybodys good.
Posted on Reply
#39
R-T-B
FlankerI still don't understand why acquisitions like these need the approval of Chinese regulators?
Because like it or not, China is a huge market and no one is willing to be banned from it.
Posted on Reply
#40
Diverge
And why would anyone care what China thinks? They went awol with the China branch of ARM...
Posted on Reply
#41
R-T-B
DivergeAnd why would anyone care what China thinks? They went awol with the China branch of ARM...
See above. Money talks.
Posted on Reply
#42
moproblems99
R-T-BSee above. Money talks.
Mine really just mutters unintelligible gibberish at a high rate of speed because of all the cocaine that has contaminated money. Can you actually understand yours?
Posted on Reply
#43
R-T-B
moproblems99Mine really just mutters unintelligible gibberish at a high rate of speed because of all the cocaine that has contaminated money. Can you actually understand yours?
Did I say it made sense bro?
Posted on Reply
#45
trickson
OH, I have such a headache
China!
Posted on Reply
#47
voltage
not surprising when it comes to the Chinese. they don't want anyone having an UP over them.
Posted on Reply
#49
bogmali
In Orbe Terrum Non Visi
Thread cleaning in progress. I'm not going to warn cause it does not work:rolleyes: thread ban and points to follow.
Posted on Reply
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