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Concessions Over $54 Billion Arm Deal Offered To EU By Nvidia


10/06/2021


Concessions Over $54 Billion Arm Deal Offered To EU By Nvidia
In order to satisfy the European Union antitrust body to allow its acquisition of the British chip designer Arm, semiconductor chip maker Nvidia has offered concessions to the regulator, according to a filing by the company to the European Commission on Wednesday.
 
Since the announcement of the merger by the biggest maker of graphics and AI chips in the world last year, there has been a wave of concerns throughout the semiconductor industry about whether it would be possible for Arm to continue to play a neutral role in licensing intellectual property to customers and rivals after it was taken over by a chip maker.
 
The antitrust and competition regulator of the European Union did not provide any details of the extent or type of concession that Nvidia has proposed, which is in line with its policy, and the regulator is expected to arrive at a final decision by October 27.
 
The EU regulator will now ask for feedback from rivals and competitors of the industry prior to taking a decision on whether to accepting the offered concessions or to make a demand for more concessions or launch a longer investigation of the acquisition which typically takes four months to complete.
 
Previously, Nvidia had said that Arm would be maintained by it after the acquisition as a neutral technology supplier as a part of the company’s efforts to allay concerns from customers of Arm such as Qualcomm Inc, Samsung Electronics Co Ltd and Apple Inc.
 
The acquisition of the deal was supported by some of the customers of Arm such as Broadcom, MediaTek and Marvell.
 
In the global field of semiconductors, Arm, which is currently owned by Japan's investment conglomerate SoftBank Group Corp, is a major player. Almost all smartphones as well as millions of other electronic devices are essentially powered by chips and semiconductors that are designed by Arm.
 
(Source:www.ndtv.com)