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National security is at stake. UK May Ban Nvidia’s Purchase Of ARM

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The UK government will consider the national security implications of US Nvidia’s purchase of UK chip maker ARM Holdings, which the UK government announced yesterday, which will question the $ 40 billion deal.

UK Digital Secretary Oliver Dowden said he has issued a Notice of Interference with the ARM sale to Nvidia. The official added that “as a next step and to help me gather relevant information, the UK’s independent antitrust authority will now prepare a consequences report that will help inform any further decisions.” On the other hand, Nvidia said the deal would not pose any significant threat to UK national security.

Nvidia also added that “we will continue to work closely with the UK authorities, as we have done since this deal was announced.” ARM is a major player in the semiconductor industry. Design and technology have been used in almost every smartphone as well as other devices.

ARM, which was founded and is still based in the English university city of Cambridge, does not manufacture microcircuits, but created the architecture on which the designs of computing cores are based. Its technology is licensed by clients such as Qualcomm, Apple and Samsung Electronics.

The UK said ARM technologies are directly linked to important departments, including the Department of Defense and Communications. Since this is a national security issue, the UK government decided to intervene.

The acquisition was previously opposed by Qualcomm, Google, Microsoft and other companies.

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