Nvidia's takeover of chipmaker Arm will be subject of full UK government investigation

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The investigation into Nvidia’s acquisition of Arm continues.

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The UK government will conduct a thorough investigation into Nvidia’s proposed acquisition of the British chipmaker arm, it was announced on Wednesday. The investigation, which will take about six months, will see whether the company’s acquisition of Nvidia poses a risk to the UK on grounds of competition or national security.

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Japanese tech giant SoftBank agreed Sell ​​Arm to Nvidia in September 2020 As part of a $40 billion deal, the chip industry’s largest. Arm isn’t as well known as mega-chip companies like Qualcomm and Intel, but its work lags behind the processors of many of the world’s mobile phones. It is one of the UK’s biggest tech success stories, which is why the government is paying so much attention to its acquisitions.

The UK’s Digital Secretary, Nadine Dorries, has tasked the UK’s regulator, the Competition Markets Authority, to operate. Investigation Started after preliminary investigation in april, A report after preliminary investigation found that Nvidia’s acquisition of Arm threatens competition in four market segments – data center, gaming, automotive and Internet of Things. The government said that the evidence revealed in the first investigation means that whether the acquisition will be a threat to national security or not, further investigation is also necessary.

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“The branch has a unique position in the global technology supply chain and we must ensure that the implications of this transaction are fully considered,” Doris said in a statement. “The CMA will now report to me on competition and national security grounds and advise on next steps.”

Nvidia did not immediately respond to a request for comment.

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