The threat comes mainly from the deal’s challenge to the EU’s ideal of “technological sovereignty. The ideal of “technological sovereignty” stems from the “Important Plan for the Common Good of Europe” in which the UK, Germany, France and 17 other EU countries will inject tens of billions of euros into the European chip industry.
In a recent online exchange session at Computex Taipei, Nvidia CEO Jen-Hsun Huang again talked about the $40 billion Arm deal. Jen-Hsun Huang said he was confident that the deal would be finalized because Nvidia and Arm are complementary and the two would come together to generate more innovation, which is good for competition and what the government would like to see. At the same time, Huang Renxun expects the deal will take 18 months to complete, that is, the end of this year or early next year.
In this regard, relevant EU officials expressed concern. In an interview with the U.S. media, Bretton, the European Commission commissioner in charge of the EU’s internal market, said he was “keeping a close eye” on the deal and was “extremely aware” of the strategic implications behind it.
Why is the EU so worried?
The EU is threatened by NVIDIA’s announcement in September 2020 of its $40 billion acquisition of Arm, which provides chip design services to more than 500 companies worldwide, including U.S. giants such as Intel, Nvidia and Apple, as well as European chipmakers such as STMicroelectronics and NXP Semiconductors. and NXP Semiconductors, among others. It is important for the entire semiconductor industry. At the same time, Arm has a lot of intellectual property in many areas such as the Internet of Things, artificial intelligence and high-performance computing, which is a technology area that the EU wants to focus on cultivating in the next decade.
The threat comes mainly from the challenge this deal poses to the EU’s ideal of “technological sovereignty. The ideal of “technological sovereignty” stems from a plan by the U.K., Germany, France and 17 other EU countries to inject tens of billions of euros into the European chip industry — a project Bruno and Peter, Germany’s federal minister of economy and energy, previously mentioned in a media interview that will be called “Important Plan for the European Common Good”, aims to boost investment in the development, design and manufacture of processors and semiconductors – key devices for the Internet of Things and data processing. He expects that the project will require an investment of 50 billion euros, of which 60 to 80 percent will come from participating companies and another 20 to 40 percent from EU subsidies.
To implement this plan, Altmeyer and Le Maire have been working with the European Commission to promote a series of such industrial policy programs, including in the areas of battery manufacturing, hydrogen, cloud computing and artificial intelligence, to reduce dependence on U.S. and Chinese producers and tech giants. However, this merger of the British and U.S. chip giants will undoubtedly further strengthen the U.S. control of the high-tech industry chain, which will not be happy to see the EU.
What is the attitude of the United Kingdom and the United States?
NVIDIA’s plan to acquire Arm was released in September last year, when NVIDIA said it reached an agreement with SoftBank to spend $40 billion to acquire Arm, which was hailed as the largest acquisition ever in the chip industry. The deal then entered a review phase, requiring approvals from China, the U.S., the European Union and the United Kingdom.
During the review phase, several Silicon Valley tech giants were the first to come out against the deal, arguing that it was bad for the industry. According to foreign media reports, at that time Intel, Qualcomm, Tesla and many other manufacturers began to discuss coordinated action and were expected to express their concerns to the U.S. and world authorities in the form of an announcement. It is worth mentioning that Apple was also involved in this discussion at that time. However, due to its special position in the industry chain, the industry predicted that it might reach an agreement with Nvidia and Arm alone.
In addition, the UK government’s culture secretary has said he is considering asking the Competition and Markets Authority to investigate the deal. Arm is an important part of the U.K. technology industry and makes a significant contribution to the U.K. economy, he said. While the acquisition is primarily a commercial matter for the parties involved, the government will keep a close eye on these issues and we (the UK government) will not hesitate to investigate further and take appropriate action when the acquisition could have a significant impact on the UK.
Today, the UK government has indicated possible opposition, major US Silicon Valley technology companies are clearly opposed, and the EU has also raised possible opposition. Whether the review will ultimately go through depends on the attitude of the U.S. and Chinese governments towards the deal.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/nvidia-ceo-jen-hsun-huang-confident-in-arm-acquisition-but-eu-expresses-great-concern/
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