Jensen Huang's defence of the Nvidia-ARM deal: Page 4 of 4

September 15, 2020 //By Peter Clarke
Jensen Huang's defence of the Nvidia-ARM deal
Jensen Huang, CEO of Nvidia, and Simon Segars, CEO of ARM, spent a great deal of Monday September 14 on conference calls arranged to suit various time zones explaining the proposed merger of their two companies.

Several analysts and journalists alighted on the issue of regulatory approval.

Huang's first point was that for the purposes of export controls the country of origin of the technology is the relevant factor, not the legal location of the owner. He said ARM's intellectual property would continue to be mainly registered in the UK and so the transfer of ownership from a Japanese company to a US company would make no difference.

Callers pressed Huang as to what China's regulatory response to the proposed take over is likely to be. "We've been through the regulatory process in China with Mellanox," said Huang (see Nvidia to buy Mellanox for $6.9 billion). He added that the China regulator is pro-competition and pro-choice for the consumer. "They will love it," he said.

This response does not explain why Chinese regulators failed to approve Qualcomm's proposed acquisition of NXP Semiconductor in 2018, a move that may have had political overtones. And now the US government has spent more than a year making commercial life almost impossible for Huawei and HiSilicon. It is now threatening to extend that discomfort to Chinese foundry Semiconductor Manufacturing International Corp., so why wouldn't China seek to extract revenge against Nvidia?

Huang has his own experience and an undeniable enthusiasm for the deal. If enthusiasm were enough, the deal would be done in a lot less than 18 months.

Related links and articles:

www.nvidia.com

www.arm.com

www.softbank.com

News articles:

ARM sale to Nvidia agreed at $40 billion

Opinion: Nvidia's bad deal is not yet done

Samsung wants consortium, not Nvidia, as buyer

Nvidia to buy Mellanox for $6.9 billion


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