Nvidia’s acquisition of Arm could be a ‘nightmare’ for China: CLSA

SINGAPORE — The “biggest challenge” for the Nvidia-Arm deal is getting regulatory approval from China, a managing director at an investment firm said this week.

That’s because the Chinese government wants to avoid the “nightmare” of an American company owning Arm, which would open the door to possible intervention by the U.S. government to limit China’s access to technology, said Sebastian Hou, managing director and head of technology research at CLSA.

In a deal worth $40 billion, U.S. graphics chip giant Nvidia has agreed to buy British chip designer Arm from SoftBank, the companies announced last week. Arm licenses chip designs to technology companies around the world and is “very crucial” for smartphones, Hou said.

The proposed transaction will need regulatory approval from the U.S., U.K., the European Union and China, the joint statement said. Nvidia is based in the U.S., while Arm is headquartered in the U.K., but both

Read More