Nvidia’s $40 billion Arm acquisition could be targeted by Chinese regulators, analysts say

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China's Ministry of Commerce (MOFCOM) and China's State Administration for Market Regulation (SAMR) could get in the way Nvidia's Arm acquisition.

Analysts believe there are a number of obstacles that Nvidia will have to overcome if it is going to convince regulators.Nvidia CEO Jensen Huang wearing his usual leather jacket.attempt to buy U.K. chipmaker Arm from SoftBank for $40 billion, according to analysts.

It wouldn't be the first time Chinese regulators have prevented a U.S. chip firm from buying a European player. In 2018, SAMRBill Ray, a senior director analyst at research firm Gartner, told CNBC by email that Chinese regulators "will seek to extract specific guarantees before granting approval." "Provision to China should not be an issue." he said. "However, this neglects the influence that the U.S. has on the U.K., and the ability of the U.S. administration to influence companies outside its obvious jurisdiction."

MOFCOM, SAMR and the Chinese embassy in London did not immediately respond to CNBC's request for comment. Nvidia declined to comment while a spokesperson for Arm said: "Nvidia, Arm and SoftBank are confident that all regulatory approvals will be secured."Arm is widely regarded as the jewel in the crown of the British tech industry. Its energy-efficient chip architectures are used in 95% of the world's smartphones and 95% of the chips designed in China.

 

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