ARM takeover: Nvidia offers concessions to the EU
Nvidia is seeking validation for its takeover of ARM and has therefore proposed concessions to the European Union.
As a reminder, the proposed takeover was first announced in September 2020 for the impressive sum of $40 billion. It has since risen to 54 billion.
Proposals to get the green light for ARM buyout
Nvidia said it would keep ARM as a neutral technology provider to allay concerns from customers such as Qualcomm, Google and Microsoft. ARM customers Broadcom, MediaTek and Marvell are in favour of the deal.
ARM, currently owned by Japan’s SoftBank, is a major player in the semiconductor industry. Its designs power almost all smartphones and millions of other devices.
The prospect of such a takeover has sparked strong reactions from the semiconductor industry, which wonders whether ARM will be able to maintain its neutrality regarding the licensing of its customers and rivals. The European Commission, which has not provided details of the concessions, in line with its policy, has set a deadline of 27 October for its decision.
The UK Competition and Markets Authority separately recommended a full investigation in August. It rejected Nvidia’s offer to maintain ARM’s open licences as insufficient, nor did it consider the partial sale of ARM’s intellectual property as a solution to its initial concerns.