Wednesday, October 6th 2021

NVIDIA's Now $54 Billion Arm Acquisition Hits Major Snag with the European Commission, Offers Concessions

It looks like NVIDIA's acquisition of Arm Holdings Plc from Japan's SoftBank, has hit its biggest regulatory hurdle, with the European Commission, the apex executive body of the European Union, deliberating on whether the deal requires a thorough investigation lasting 4 months. Reuters reports that NVIDIA offered the Commission certain "concessions," which may affect the way Arm operates under NVIDIA. The Commission did not disclose these concessions, but mentioned that it will take until October 27 to decide whether or not they merit further investigation.

NVIDIA's Arm acquisition has split the Arm licensee industry along the median. The likes of Apple, Qualcomm, and Samsung, have voiced serious concerns over the deal. They fear that as a high-performance SoC designer itself, NVIDIA will withhold the most advanced bits of the Arm IP to itself, giving it a competitive edge over licensees. Not all companies see it this way, with Broadcom, MediaTek, and Marvell openly endorsing the deal. It's interesting to note here, that Apple, Samsung, and Qualcomm, make faster smartphone SoCs than MediaTek, Broadcom, and Marvell (and their subsidiaries) do.
Source: Reuters
Add your own comment

29 Comments on NVIDIA's Now $54 Billion Arm Acquisition Hits Major Snag with the European Commission, Offers Concessions

#26
InhaleOblivion
Yeah this is worse than America going from 4 major telecom carriers to 3. The vast majority of tech users here already know how this will go if approved.
Posted on Reply
#27
medi01
persondbWhat's curious is that the ones against it are the ones with custom ARM cores projects or GPUs. Possibly, Qualcomm and Apple wouldn't be thrilled to have Nvidia offer their archs instead of Mali ones as they could lose a lot of advantages there.
So, NV needs to buy ARM to produce its own custom ARM project, huh?
Posted on Reply
#28
Totally
medi01So, NV needs to buy ARM to produce its own custom ARM project, huh?
No, there is nothing stopping Nvidia from doing so right now as demonstrated by Samsung, Microsoft, Apple, and Amazon* who have developed their own custom ARM silicon. So their motives lie entirely elsewhere.
Posted on Reply
#29
theGryphon
TurmaniaForgive me for askinh but why is an american company always facing bureaucratic troubles from europeans but not the other way around. I remember very clearly pepsico wanted to buy Danone from french and in the end their government vetoed the deal citing Danone is historic importance to french culture....always same and lame excuses.
I think you got your answer with Broadcom/Qualcomm deal that didn't go through because of US govt veto. It's the same treatment when we're talking about companies with critical IP.

French case is kinda different, well because French are. They have a very strong sense of nationality there, and I respect that. I don't necessarily like the French govt policies but it's a matter of national pride there when it comes to their big brands/companies. Remember French govt bailout of the PSA group back in 2014? They wouldn't let them go under or get gobbled up by another conglomerate...
Posted on Reply
Add your own comment
Feb 10th, 2025 09:49 EST change timezone

New Forum Posts

Popular Reviews

Controversial News Posts