UK to Conduct In-Depth Investigation into Nvidia's ARM Acquisition over National Security Concerns

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] The UK government has reportedly decided to conduct an investigation into the sale of ARM, the country's largest technology company, to the United States, not only from an antitrust perspective but also from a national security standpoint.

According to the Sunday Times on the 14th (local time), Nadine Dorries, the UK Secretary of State for Digital, Culture, Media and Sport, is expected to order a second-phase in-depth investigation into NVIDIA's acquisition of ARM on the 16th.

Secretary Dorries is likely to request a thorough investigation into the impact of NVIDIA's acquisition of ARM on competition in the semiconductor market as well as its implications for UK national security.

Earlier, the UK Competition and Markets Authority (CMA) released the results of the first-phase investigation into NVIDIA's acquisition of ARM in July, stating that "there are serious concerns from a competition perspective."

NVIDIA said, "We will continue to cooperate with the UK government to address concerns regarding the ARM acquisition. The second-phase investigation will be an opportunity to demonstrate how much the development of ARM will accelerate through the merger."

However, the Sunday Times predicted that this would put NVIDIA in a rather difficult position.

NVIDIA initially aimed to complete the acquisition of ARM by March 2022, but the prolonged review by the UK government has increased the likelihood of delays in the plan.

Not only the UK but also competition authorities in the European Union (EU), the United States, and China are conducting investigations into NVIDIA's acquisition of ARM.

NVIDIA agreed last September to acquire ARM from Japan's SoftBank for $40 billion (approximately 47.2 trillion KRW), but final approval from competition authorities in the US, UK, China, and the EU is required for the acquisition to be finalized.

ARM is a company that has provided semiconductor design technology for smartphone application processors (AP) to companies such as Apple, Qualcomm, and Samsung, with 95% of mobile devices adopting its technology.

Qualcomm, Samsung, Amazon, Huawei, and others have expressed opposition, arguing that NVIDIA's acquisition of ARM could lead to a monopoly in semiconductor technology.

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