Qualcomm’s position to regulators: against NVIDIA’s acquisition of arm


Tencent technology news on February 12, according to media reports, according to people familiar with the matter, the US chip manufacturer Qualcomm has told global regulators that it opposes NVIDIA’s US $40 billion acquisition of British chip company arm.
It is reported that Qualcomm has expressed concerns about the deal to a number of regulators.
According to people familiar with the matter, the investigation of the US Federal Trade Commission has entered the “second stage”. US regulators have asked Softbank, NVIDIA and arm for more information. Compliance with the information requirements could take months as several large documents need to be prepared, people familiar with the matter said. In the second phase, they added, the FTC will also engage with other companies that may have relevant information that could help it make decisions.
According to people familiar with the matter, Qualcomm contacted regulators because it believed they would play an important role in determining whether the transaction was completed or not. It talked to representatives focused on antitrust law and mergers and acquisitions.
NVIDIA said it believed regulators would see the benefits of the acquisition. So far, Softbank and arm have declined to comment. “What you see is a very thorough, very painful, very long investigation,” said a person familiar with the matter
It is reported that Qualcomm opposes NVIDIA’s acquisition of arm because it believes that NVIDIA has a high risk of becoming the gatekeeper of ARM technology and prevents other chip manufacturers from using arm’s intellectual property rights. Qualcomm believes NVIDIA will not be able to take full advantage of the acquisition without crossing some of the lines that people are worried about.
Other people familiar with the matter said they believed the deal was highly likely to be blocked by one or more regulators. “In the final analysis, whether the deal is anti competitive or not, it is based on a very simple idea: arm is the driver of the competition,” the source said. It enables companies to go out and compete. Whether it’s MediaTek, Amazon AWS, Qualcomm or NXP. Any company, regardless of its R & D budget, can license from arm and build its own arm based CPU. It’s a unique model. ”
In September 2020, NVIDIA announced that it would spend $40 billion to acquire arm, a semiconductor design company of Softbank. If approved, the deal would be the largest acquisition in the history of the chip industry. (compiled by Tencent technology / Wuji)