Broadcom Supports Nvidia's Acquisition of ARM... Nvidia Gains an Ally

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Nvidia, which has been stuck due to regulatory hurdles over the largest merger and acquisition in the semiconductor industry, has found allies. The three major semiconductor companies?Broadcom, Marvell, and MediaTek?have announced their support for Nvidia's acquisition of ARM.

According to CNBC on the 28th (local time), Broadcom CEO Hock Tan stated in a press release, "Broadcom supports Nvidia's acquisition of ARM."

He added, "ARM is a key partner for Broadcom," and "Broadcom supports the acquisition because Nvidia has assured the industry that it will increase overall investment in ARM's technology and continue to provide the technology fairly and reasonably."

Marvell CEO Matt Murphy also declared his support, saying, "There are several benefits if Nvidia acquires ARM." Murphy explained, "If the two companies merge, they can accelerate the roadmap for advanced central processing unit (CPU) cores, and ARM-based designs will become widely applicable in the semiconductor industry." He further publicly stated, "Marvell supports Nvidia's acquisition of ARM, expecting an active licensing policy that guarantees fair access and fair terms."

Rick Tsai, CEO of MediaTek, the world's largest mobile chip developer based in Taiwan, also said, "The combination of Nvidia and ARM will benefit the semiconductor industry."

Earlier, Nvidia announced in September last year that it had agreed to acquire the UK semiconductor design company ARM for a total of $40 billion through a combination of cash and stock exchange.

However, the merger process has not been smooth due to opposition from UK regulators and competing semiconductor companies. ARM is one of the leading companies in semiconductor design, and there are concerns that Nvidia's acquisition of ARM could hinder market competition.

Competitor Qualcomm has expressed concerns that "Nvidia might restrict ARM's technology supply or raise prices."

Other competitors, including Google and Microsoft (MS), have also shown opposition to Nvidia's acquisition of ARM.

With the three major semiconductor companies, including Broadcom, publicly supporting Nvidia's acquisition of ARM, it is seen as having overcome a significant hurdle.

Citigroup analyst Atif Malik predicted, "With the support declaration from the three major semiconductor companies, there will be significant progress in Nvidia's acquisition of ARM."

This content was produced with the assistance of AI translation services.