The Proposed Acquisition Of Chip Designer Arm By Nvidia Faced Challenges

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Nvidia’s takeover of chip designer Arm has faced a challenge by the US Federal Trade Commission. The commission said that this proposed acquisition may give Nvidia too much control over the market.

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Many big tech companies such as Apple, Qualcomm, Sony, and Samsung depended on the designs of Chip designer company Arm. These big companies are the major competitors of Nvidia and the recent takeover may allow Nvidia to have control of the computing technology of the market. Because Arm licenses its designs and technology to these giant tech companies. This British firm Arm was sold to Japan’s SoftBank in 2016.

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However, Nvidia claimed the takeover would “work to demonstrate that this transaction will benefit the industry”. Because they are committed to maintaining Arm’s open-licensing model. Nvidia also declared to keep the company based in the UK and hire more staff. They hoped that the deal would be completed by the middle of the next year. But the legal challenges from regulators made the process uncertain.

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Nvidia is familiar among tech users for producing high-performance graphics cards and gaming chips. This company is well known for developing software and artificial intelligence systems. A US watchdog said, “The proposed merger would give Nvidia the ability and incentive to use its control of this technology to undermine its competitors, reducing competition and ultimately resulting in reduced product quality, reduced innovation, higher prices, and less choice.”