Big tech companies such as Google, Microsoft and chipmaker Qualcomm have opposed Nvidia’s takeover of the Arm chip maker, Bloomberg News reports based on informed sources. Firms believe the acquisition is detrimental to competition in the chip business, the US regulator has reported. He initiated an in-depth investigation and requested responses from the market.
Arm designs chips according to its own system. If other chip makers want to use the chip designs, they can get a license. Almost all chip manufacturers do this, and Arm chips are the standard in mobile telephony. It is also possible to obtain a license and then design your own chips that use the Arm infrastructure. Apple is doing this, for example, and it’s putting those chips into its iPhones and iPads, but it’s also starting to switch to Arm chips for laptops and desktop computers.
The acquisition could give chipmaking Nvidia advantages over other Arm customers, and other tech companies fear. For example, Nvidia could restrict other companies’ access to Arm technology or raise prices. In contrast, Nvidia argues that the acquisition price of around $ 40 billion means the company should retain as many customers as possible for Arm.
The acquisition of Arm, which is still in the hands of Japanese investor and telecom firm SoftBank, is not only being investigated in the US. Regulators in the United Kingdom, the European Union and China are also looking to approve the acquisition.
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