Clear. 63.2   F New York
AI-Powered News Summarizer
Technology

Analysis: Nvidia's $40 billion Arm deal might hit a snag with China

September 17, 2020. Summarized by summa-bot.

Nvidia's proposed deal to buy British chipmaker Arm is already facing push back from China.

Hong Kong (CNN Business)The battle between the United States and China for control of critical technology could doom a record-breaking deal for British chip designer Arm. The proposal from Nvidia (NVDA) to buy SoftBank-owned (SFTBF) Arm for $40 billion requires regulatory approval from the United Kingdom, the European Union, the United States and China.

An op-ed published this week in The Global Times, a state-run Chinese tabloid, characterized California-based Nvidia's deal for Arm as "disturbing" for the Chinese and European tech companies that rely on the company's advanced chip designs.

But if Arm is acquired by an American company, it would likely be subject to US regulations — and Washington has been increasingly using export controls to cut Chinese tech firms off from key technology.

"Control over Arm by a US company could mean potentially more restrictions on use of Arm technology by Chinese firms that come under new export controls or other US regulatory action," said Paul Triolo, head of geo-technology at Eurasia Group.

Arm has a joint venture in China, which is developing its own capacity for semiconductor intellectual property design, and Chinese regulators could "require Arm China to be spun off" to ensure it doesn't come under US regulatory action, he said.

Summarizer is on Google News. Now you can get the latest AI summarized news on your favorite news platform.

Don't like Google News? We have an RSS Feed for you.

Suggestions