EU opens investigation for Nvidia’s purchase of chip designer Arm

In recent reports, the European Union regulators have announced conducting an in-depth investigation for graphics chip maker Nvidia. The investigation will focus on Nvidia’s $40 billion purchase of chip designer Arm over the growing reports that it would reduce competition, adding to worldwide scrutiny of the deal.

Reportedly, the European Commission has expressed its distress over the fact that the combined company would have the incentive and ability to limit the access to technology from United Kingdom based Arm Ltd. The chip designs of this company dominate over maximum smartphones in the world.

The commission also known as EU’s best antitrust organization expressed its trouble about the deal which might increase the prices, limit innovation and offer less choice in the semiconductor industry.

Headquartered in Santa Clara, California, Nvidia Corp., had in the previous year announced its intentions of taking over Arm from the Japanese tech giant Softbank. Apparently, the deal raised serious questions regarding Arm, that it will ditch its business format of providing the chip designs to tech companies, including Nvidia’s opponents.

Margrethe Vestager, the EU Commissioner, commented that the aim of the investigation is to make sure that companies functioning in Europe get hold of the essential technology needed to produce state-of-the-art semiconductor products at beatable prices.

Nvidia reportedly expressed their will to address the ongoing concerns of the EU. The team also said that the latest deal will help in the growth of Arm and accelerate competition and innovation.

According to the reliable reports, Nvidia has promised to instate Arm’s headquarters in Cambridge, England and increase the British staff. It has also promised on open license model structure for Arms and to maintain customer neutrality while functioning.

About Nvidia

Nvidia Corporation is an American Multinational technology company based in California. The company’s forte lies in designing graphic processing units for the professional markets and gamers and manufactures chip units used in automotive market and mobile computing.

Source:- https://www.usnews.com/news/technology/articles/2021-10-27/eu-investigates-nvidias-purchase-of-chip-designer-arm