This story is available exclusively to Business Insider subscribers.Chip designer Arm may struggle to convince the companies that license its tech that it remains independent, if its $40 billion acquisition by Nvidia goes ahead.
Arm's CEO Simon Segars sought to reassure doubters on Monday, telling journalists it was "really important Arm is able to maintain its business model and continue to serve the licensees."UK chip designer Arm risks a huge backlash from the firms who license its tech — including Apple and Qualcomm — if itsCCS Insight analyst Geoff Blaber said Arm's diverse customer base, which also includes Huawei and Samsung, would oppose its takeover by a US chipmaker.
Nvidia announced Sunday that it would acquire Arm from its current Japanese owner SoftBank for $40 billion. "China is going to hate it," one Chinese chip executive said, adding that US firms who create server chips based on Arm designs might have a harder time selling in China thanks to the new US parent firm.
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