UK govt orders in-depth probe of Nvidia's Arm acquisition
By Michele Maatouk
Date: Tuesday 16 Nov 2021
(Sharecast News) - The UK government has asked the Competition and Markets Authority to carry out a phase two investigation into Nvidia's proposed acquisition of Cambridge-based Arm from Japan's Softbank on competition and national security grounds.
US chip designer Nvidia announced in September last year that it had agreed to buy Arm.
Following the CMA's completed phase one probe into the deal - which found it could lead to a "substantial lessening of competition" across data centres, Internet of Things, the automotive sector and gaming applications - Digital Secretary Nadine Dorries has requested that an in-depth probe be launched.
Tens of billions of Arm-based chips are used worldwide. Based on the company's intellectual property, they power smartphones and are contained in many connected devices within homes, cars and businesses. While not all individual devices relying on Arm-based chips are necessarily classed as 'critical' in themselves, the government said, the security and resilience of the broader supply chain is important for UK national security.
Dorries said: "I have carefully considered the Competition and Market Authority's 'Phase One' report into Nvidia's proposed takeover of Arm and have decided to ask them to undertake a further in-depth 'Phase Two' investigation.
"Arm has a unique place in the global technology supply chain and we must make sure the implications of this transaction are fully considered. The CMA will now report to me on competition and national security grounds and provide advice on the next steps.
"The government's commitment to our thriving tech sector is unwavering and we welcome foreign investment, but it is right that we fully consider the implications of this transaction."
The CMA will carry out its investigation over the next 24 weeks.
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