Simon Segars, chief executive of the UK chipmaker Arm Holdings, has said that he expects tough and protracted scrutiny from China over Nvidia’s $40 billion takeover of the company, as tensions rise over the implications of the contentious deal for the global chip industry, reported the Financial Times.
China’s chipmakers have urged Beijing to probe Nvidia’s proposed acquisition of Arm on the basis that it would hand the US company control over essential technology used in many of the world’s smartphones and data centers, says the FT. That has led to concerns that regulators in China may not sign off the acquisition.
Speaking to the Financial Times on Tuesday, Segars argued that the Chinese regulators would want to review the combination of Arm and Nvidia thoroughly, though he remained confident the deal would ultimately proceed.
“It’s a tough place at the moment with geopolitics so we’ll have to play that very carefully,” he said, adding that regulatory clearance across all of its markets will “take a long time”.
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