A resistance front that cannot be neglected is currently building up in China against the takeover of the chip designer ARM by Nvidia. Several local technology companies are calling on the regulatory authorities to take a closer look.
Nvidia recently announced that it would buy the British company for $40 billion. There have already been various warning voices in this regard. And the plan is not simply accepted in China either, and influential corporations such as Huawei have sent their lobbyists on track to put pressure on the Chinese authorities dealing with the case.
A takeover of this size, which is also likely to have massive effects on an entire industry, always requires the approval of various competition authorities. Huawei is now demanding that the Chinese veto the acquisition. Alternatively, it is also possible to give consent only under clear conditions, as reported by the US Business news agency Bloomberg.
Depending on ARM
One of the main reasons for the resistance is simply the fact that ARM will come under US jurisdiction to a much greater extent as a result of the takeover. So it can quickly happen that ARM becomes a pawn in the trade war between the USA and China. In view of the fact that almost all Chinese hardware manufacturers depend on ARM chips, this can lead to massive problems for the local IT industry.
Basically, Chinese authorities do not have any direct legal options to get involved in a takeover of ARMs by Nvidia. However, China is also the largest semiconductor market in the world. The country imports chips worth around $300 billion annually. Therefore, every relevant manufacturer in the segment should strive to maintain peace with those responsible there in order to get as few obstacles as possible in the way of access to the market.