Nvidia's Arm deal sparks quick backlash in chip industry

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Nvidia Corp's $40 billion agreement to acquire Arm Ltd from SoftBank Group Corp is likely to meet strong opposition from Nvidia's chip industry rivals, analysts say, with murmurs of protest emerging in South Korea and China within hours of the deal's announcement.

Arm’s open approach of licensing its designs to all comers has turned the 160 billion chips sold based on its technology into a huge ecosystem of devices from smart phones to smart toasters.

“An acquisition by Nvidia would be detrimental to Arm and its ecosystem,” Blaber said. “Independence is critical to the ongoing success of Arm and once that is compromised, its value will start to erode.” South Korean chip industry officials and experts said that Nvidia’s Arm buy would intensify Nvidia’s competition with Samsung, Qualcomm and others in self-driving cars and other future technologies, while raising concerns that Arm could hike licensing fees for competitors.

 

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Nvidia acquiring Arm? 😧

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