Huawei, other Chinese tech firms are said to seek curbs on Nvidia’s US$40 billion Arm acquisition

Huawei, other Chinese tech firms are said to seek curbs on Nvidia’s US$40 billion Arm acquisition

Chinese technology companies including Huawei Technologies have expressed strong concerns to local regulators about Nvidia Corp’s proposed acquisition of chip designer Arm, people familiar with the matter said, potentially jeopardising the US$40 billion deal.

Several of the country’s most influential tech firms have been lobbying the State Administration for Market Regulation (SAMR) to either reject the transaction or impose conditions to ensure their access to Arm technology, the people said.

Chief among their concerns is that Nvidia may force the British firm to cut off Chinese clients, they said, asking not to be identified discussing private deliberations. It is feared that Arm – whose semiconductor designs and architecture are central to most of the world’s electronics, from smartphones to supercomputers – will become yet another pawn in the struggle for tech supremacy between the US and China.

Nvidia is buying Arm from Japan’s SoftBank Group Corp, bringing it under American jurisdiction and theoretically threatening the British company’s cherished status as a neutral party in the semiconductor industry.