Shulou(Shulou.com)05/31 Report--

Nvidia, a graphics chipmaker, may be close to abandoning its acquisition of Arm, which makes it difficult to complete a $40 billion deal because of slow progress and strong industry opposition.

In September 2020, Nvidia initially announced that it would buy Arm from Softbank Corp. for $40 billion in cash and stock. In more than a year's time, the deal may be cancelled.

Various obstacles since the deal was made public have reportedly led to a change in the position of the two companies on the acquisition issue. Nvidia doesn't think the deal will actually be completed, according to an unnamed source from Bloomberg.

On the other hand, another source apparently claimed that Softbank Corp. is working on an initial public ​​ offering for Arm if the Nvidia acquisition fails.

Nvidia, Arm and Softbank Corp. have faced increasing scrutiny from several quarters since the deal was announced.

In the United States, the Federal Trade Commission sued to block the deal in December 2021, citing fears that it would stifle innovation and hurt competition in the chip market. The deal will "allow one of the largest chip companies to control the computing technology and design on which competitors rely on their own competitive chips".

Similarly, in April, the UK government asked the Competition and Market Authority to investigate the acquisition of Arm, citing national security concerns. A formal investigation into the deal began in November.

One source added that the deal could also have problems with the Chinese authorities, who clearly intend to block the acquisition if it is approved in other countries.

Chip maker Qualcomm opposed the deal in February 2021, fearing that Nvidia could eventually become the gatekeeper of ARM technology. As Arm licenses its chip designs to more than 500 companies, including Apple, Nvidia seems likely to prevent competitors and licensees from using them in the future.

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