China state media outlet calls Nvidia's Arm purchase 'disturbing', urges regulatory caution

China state media outlet calls Nvidia's Arm purchase 'disturbing', urges regulatory caution

The logo of technology company Nvidia is seen at its headquarters in Santa Clara
FILE PHOTO: The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith

SHANGHAI: An op-ed in China's state-backed Global Times on Wednesday (Sep 16) said US chipmaker Nvidia's planned acquisition of Arm from Japan's SoftBank Group was "disturbing", urging global regulators to exercise caution as they evaluate it for approval.

"Given the US-China tensions and US suppression on a range of Chinese technology enterprises, if Arm falls into US hands, Chinese technology companies would certainly be placed at a big disadvantage in the market," said the op-ed, the author of which was not named.

SoftBank said on Monday it had agreed to sell Britain-based chip designer Arm to Nvidia for as much as US$40 billion in a deal set to reshape the global semiconductor landscape.

The Global Times op-ed said Chinese companies put on the US "entity list" risk getting cut off from using Arm-based chips, while European companies using Arm might also face difficulties supplying China.

In May 2019, the US department of commerce placed Chinese tech giant Huawei on a list of companies that American firms are barred from supplying and servicing.

Before Nvidia can assume full control of Arm, anti-monopoly regulators in major markets must signal approval of the transaction.

In 2018, US chipmaker Qualcomm reversed its planned acquisition of Netherlands' NXP Semiconductor after Chinese regulators declined to approve it.

Source: Reuters

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