Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Arm takeover: Government orders national security and competition probe over $40bn buyout by Nvidia

Arm takeover: Government orders national security and competition probe over $40bn buyout by Nvidia

The decision follows an initial investigation by the CMA which found the sale of the tech firm, whose chip designs are used across global industry, could weaken rivals and stifle innovation.

Nadine Dorries, the digital secretary, has ordered an in-depth probe into the $40bn planned takeover of Britain's Arm Holdings by America's Nvidia - on national security as well as competition grounds.

Cambridge-based Arm designs chips licensed for use across global industry with customers including Apple, Samsung and Intel.

Its current owner, the Japanese conglomerate Softbank, agreed last September to sell it to Nvidia.

Digital secretary Nadine Dorries ordered the in-depth investigation


But an initial investigation by the UK's Competition and Markets Authority (CMA) reported earlier this year that the deal could weaken rivals and stifle innovation and recommended that it should be more closely examined in a "phase two" probe.

The CMA said the takeover may ultimately mean more expensive or lower quality products in cutting edge technologies such a gaming, data centres, the "internet of things" and self-driving cars.

Arm occupies a key position at the heart of the global semiconductor industry and more than 200 billion chips have been sold based on its technology.

Nvidia, which makes graphic and AI chips, is a rival to some other companies that also use Arm's technology - one cause for concern over the deal.

In addition to the CMA investigation, Britain's department for digital, culture, media and sport (DCMS) has also been gathering evidence from across government over national security concerns.

It said: "The chips, based on Arm's intellectual property, power smartphones and are contained in a considerable proportion of connected devices within homes, cars and businesses.

SoftBank has agreed to sell Arm


"While not all individual devices relying on Arm-based chips are necessarily classed as 'critical' in themselves, the security and resilience of the broader supply chain is important for UK national security."

Ms Dorries said: "Arm has a unique place in the global technology supply chain and we must make sure the implications of this transaction are fully considered.

"The CMA will now report to me on competition and national security grounds and provide advice on the next steps.

"The government's commitment to our thriving tech sector is unwavering and we welcome foreign investment, but it is right that we fully consider the implications of this transaction."

The CMA will now have 24 weeks to carry out its investigation and deliver its report to the digital secretary to decide whether to act to remedy any adverse consequences or refer the case back to the regulator to take any action over competition concerns.

Authorities in the US and China are also investigating the deal.

Nvidia has pledged to maintain the neutrality that has been central to Arm's success.

It said it planned to address the initial concerns flagged by the CMA in August and that it would continue to work with the UK government over the deal.

A spokesperson said: "The phase two process will enable us to demonstrate that the transaction will help to accelerate Arm and boost competition and innovation, including in the UK."

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
×