UK to open in-depth investigation into Nvidia’s takeover of ARM chip maker for national security reasons

Culture and Digital Secretary Nadine Dorries will ask the Markets and Competition Authority to conduct a second phase investigation of the transaction.

The American company agreed to take over ARM from the Japanese group Softbank in September 2020, triggering a reaction from politicians, competing companies and customers.

ARM technology is used by competing chip manufacturers, such as Qualcomm, Samsung Electronics and Apple, to produce their own processors.

Nvidia said the fears were unfounded. However, the Markets and Competition Authority (CMA) sounded the alarm about the agreement in August, when it said the merged entity could reduce competition in markets around the world that rely on chip technology.

The government considered the findings of the CMA and assessed the possible implications of the national security agreement.

A full in-depth investigation would take about six months, after which the government could block the takeover, approve or allow it to be carried out with certain commitments.

The Digital, Culture, Media and Sports Department declined to comment on the Sunday Times article.

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