Paul van Gerven
20 April 2021

The UK government is looking into the national security implications of the 40-billion-dollar takeover of Arm by Nvidia. Oliver Dowden, the British Secretary of State for Digital, Culture, Media and Sport, has instructed the Competition and Markets Authority (CMA) to prepare a report with advice on jurisdictional, competition as well as national security issues. The government will examine the national security interests alongside CMA’s process.

Credit: Arm

The proposed acquisition, announced last September, is facing a lot of headwind. Already Google, Microsoft and Qualcomm have raised objections, fearing the neutrality of Arm’s business model will be compromised. Reportedly, the EU will launch a similar in-depth probe into the deal, while the FTC has already started one.

The biggest obstacle by far, however, will be China. Since the US has been blacklisting Huawei and other Chinese tech companies, Beijing won’t be too keen on Arm being acquired by a US company. So far, Arm continued to do business with Chinese companies, claiming its technology is of British origin and thus not affected by US trade restrictions.