NVIDIA and ARM Purchase Deal Could Be Hinder China

Ni Guangnan, former Lenovo chief engineer, believes the Chinese Ministry of Commerce will reject the NVIDIA and ARM purchase agreement.

NVIDIA, chip designer in recent weeks It acquired ARM for a record fee. Payment is the easiest part of mergers and acquisitions based on multinational companies. The hard part is competition and monopoly in big markets. Although the agreement has been achieved, NVIDIA and ARM side must obtain legal approval from many countries of the world.

It appears that the NVIDIA and ARM deal will become involved in the ongoing trade war between the US and China, and Beijing will use the agreement’s approval as a bargaining chip against the US.

ARM entered the Chinese industry in 2002 and now occupies a dominant position in the market, according to a Reuters report. In addition, it meets approximately 20% of its revenue from Chinese customers. According to the website of ARM China, a subsidiary of ARM UK, 200 Chinese-sourced licensees, including Huawei, have sold more than 19 billion devices as of mid-September.

Former chief engineer of Chinese computer giant Lenovo Group believes Beijing can block the NVIDIA-ARM purchase deal. Because with this acquisition, ARM has now joined NVIDIA, a US-based company. In this context, the USA Strict sanctions against Huawei and even recently Chinese chip maker We heard that he was targeting SMIC. China’s concern is that with the ARM purchase, technologies are included in this list of sanctions.

As a result, China’s monopoly regulator can do its best to circumvent this agreement on the grounds that it could create a monopoly for the procurement process of chip design tools. Apart from that, they can use it as a bargaining move in this ongoing trade war as we said.

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