Industry sources have revealed that Chinese tech companies, including Huawei, have raised concerns with national regulators about Nvidia’s plans to acquire ARM, and they have serious reasons for doing so.
According to sources, several of China’s most influential tech companies have contacted the State Administration of Market Supervision of China to veto the deal or add additional conditions to ensure they can continue to use ARM’s technology. The biggest concern of these companies is that Nvidia could force ARM to stop working with Chinese clients under the veto imposed by the United States.
Nvidia is trying to buy the British company ARM from the Japanese group SoftBank, which would put ARM under the jurisdiction of the United States. In theory, this would happen in the event that ARM lost its neutrality status in the chip industry, and if that happens, the US. it would blow up the Chinese industry.
Bloomberg intelligence analyst Anthea Lai said allowing Nvidia to acquire ARM may lead to Huawei having a difficult time sourcing the ARM chip design. The ARM architecture is the foundation of a range of Huawei’s products, including processors for smartphones, tablets, and wearables to televisions, servers, and Artificial Intelligence. Huawei declined to comment on the news.