+17 C°
Traffic jam:   0

UK to investigate Nvidia’s ARM deal over national security concerns

20 April 2021
2 min.
UK to investigate Nvidia’s ARM deal over national security concerns

Deal under threat

Nvidia's biggest deal to acquire UK tech company Arm for $40bn could be blocked by UK authorities. An investigation into the potential implications of the deal has been launched and national security concerns have been raised.

Nvidia (NVDA) shares, up more than 110% in the past 12 months and 17.7% YTD, fell 3.46% on Monday as the UK department launched an investigation into the implications of its deal with Arm Holdings, the UK's biggest technology company.

The deal between Nvidia and Arm

Nvidia struck a deal with Arm last September through Japanese investment bank SoftBank, which now owns Arm. Nvidia expected that it could complete the deal in 18 months, after receiving all necessary approvals.

Nvidia's deal with Arm has caused high concern for the technology industry and regulators, as Nvidia gains huge weight and influence in the industry in the event of a merger.

Nvidia executives, who have high expectations for the future prospects of the deal, said the terms of the deal assume that Arm will continue with its open licensing model, "while maintaining the global customer neutrality that has been the foundation of its success."

Nvidia also indicated that Arm will remain headquartered in Cambridge, where Nvidia will build a world-class artificial intelligence (AI) research centre as well as a state-of-the-art AI supercomputer powered by Arm processors.

Barring a deal

On Monday, Britain's digital secretary for the Department for Digital, Culture, Media and Sport said the Nvidia and Arm deal raises questions about UK national security and authorities would launch an investigation into the potential implications.

Market experts point to the fact that the world's largest countries are seeking to increase their control over the technology industry in general and the semiconductor industry in particular, as they become increasingly important to economies.

Asian countries, South Korea, Taiwan, Japan and China account for most of the world's semiconductor production; the US has lost a significant share of the manufacturing market as US technology companies have gone down the outsourcing route and taken advantage of cheaper manufacturing services in Asia.

Companies3 in the news

1 place
SoftBank Group
2 place
3 place


Rating companies
66 Mention
65 Mention
61 Mention
54 Mention
Dow Jones
49 Mention
49 Mention
35 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director