Caroline Dinenage, the UK’s digital minister, said the UK is evaluating the impact of selling chip designer Arm to the American company Nvidia, including a promise to keep its headquarters and employees in Cambridge in the east of England.
She told members of Congress earlier on Tuesday: “We are currently working very hard to understand the full impact of this move and its potential future impact, and from there we can consider what steps we wish to take.”
In terms of market value, Nvidia, the largest chip company in the United States, has agreed to acquire Arm from Japan’s SoftBank for US$40 billion (approximately Rs 2,93,572 crore).
Dininaki said that the ministers will consider SoftBank and Nvidia’s commitment to keep Arm as a successful UK business “very cautiously,” and that the government has discussed it with relevant parties.
She said that the decision on whether to intervene in the transaction will be made by the Minister of State in charge of digital, culture, media and sports after considering relevant information.
The leading Japanese technology company Arm was sold to SoftBank after being guaranteed by a Japanese conglomerate in 2016 to retain the company’s headquarters in Cambridge, England and increase employment opportunities, thus losing its independence.
Nvidia CEO Huang Renxun also made a similar promise.
Arm’s energy-efficient architecture is the basis for processors produced by Apple, Samsung, Qualcomm and other companies, making the technology widespread in smartphones and in many other devices.
© Thomson Reuters 2020
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