Against the takeover of the chip designer ARM by Nvidia, a resistance front is currently building up in China that should not be neglected. Several technology companies there are calling on the regulatory authorities to take a close look.
Nvidia had recently announced that it wanted to buy the British company for 40 billion dollars. There have already been various warnings about this. And the plan is not simply accepted in China either, and influential corporations like Huawei have sent their lobbyists on the trail to put pressure on the Chinese authorities who are dealing with the case.
A takeover of this magnitude, which is also likely to have a massive impact on an entire industry, always requires the approval of various competition authorities. Huawei and Co. are now demanding that the Chinese side veto the acquisition. Alternatively, it is also possible to grant approval only under clear conditions, as reported by the US news agency Bloomberg
Dependent on ARM
One of the main reasons for the resistance is simply the fact that ARM will be much more subject to US jurisdiction in the future as a result of the takeover. Thus it can quickly happen that ARM becomes a pawn in the trade war between the USA and China. In view of the fact that almost all Chinese hardware manufacturers depend on ARM chips, this could lead to massive problems for the local IT industry.
Basically, Chinese authorities have no direct legal possibilities to get involved in a takeover of ARMs by Nvidia. However, China is also the largest semiconductor market in the world. The country imports chips worth around 300 billion dollars annually. Therefore, every relevant manufacturer in the segment should strive to keep peace with those responsible there in order to get as few obstacles as possible in the way of access to the market.