US semiconductor maker Nvidia said it will acquire UK-based computer chip designer Arm Holdings from SoftBank Group in a transaction worth $40 billion, a deal that could put the Chinese semiconductor industry at the risk of US control, Chinese analysts said.
The acquisition is likely to encounter roadblocks from China’s regulators, they added.
“As part of Nvidia, Arm will continue to operate its open-licensing model while maintaining the global customer neutrality that has been foundational to its success,” the US firm said in a statement.
However, the “neutrality” is in serious doubt as Arm will become part of a US firm, which means the Trump administration could contain China’s growing chipset industry from the design side, following its crackdown on Huawei, Ma Jihua, a veteran telecom industry analyst, told the Global Times on Monday.
“The acquisition will affect the development path of China’s chipset industry as most of its products are based on Arm architecture,” said Ma.