Nvidia's acquisition of Arm could be a 'nightmare' for China, CLSA says

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China wants to avoid the 'nightmare' of an American company owning Arm, which would open the door to possible intervention by the U.S. government to limit China's access to technology, said Sebastian Hou of CLSA.

Arm licenses chip designs to technology companies around the world and is "very crucial" for smartphones, Hou said.

Almost every smartphone sold today uses Arm technology. According to Arm, more than 180 billion chips with its processor cores and other components have been shipped around the world. A Nvidia logo is seen on the company's building at an industry park on February 7, 2019 in Tianjin, China.he had "every confidence" the deal would be approved by Chinese regulators.said it was "disturbing" that Arm could be bought by a U.S.-owned company. The Chinese tabloid, often seen as closely aligned to the government's thinking, also said: "If Arm falls into U.S.

 

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China will just manufacture their own chips which will be a nightmare for Nvidia and Arm.

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