Hong Kong Economic Times (HKET), the leading financial daily in Hong Kong, recently reported that anonymous sources revealed that Huawei is leading several large Chinese technology companies in lobbying the Chinese government to block Nvidia’s acquisition of ARM. Nvidia (NASDAQ: NVDA) is one of the world’s largest chip makers headquartered in Silicon Valley. ARM is the British company whose chip architecture is the basis for nearly all commercial mobile CPUs (Central Processing Units). Along with other Chinese smart device manufacturers, ARM has also licensed Huawei’s mobile CPU chip design. If Nvidia, an American chip maker, acquires ARM, the U.S. government may require Nvidia to cut off supplying (and licensing) to its Chinese customers. Around 20 percent of ARM’s income comes from the Chinese market and around 95 percent (over 200 companies) of Chinese SoC (system on a chip) providers are based on ARM architecture. Huawei is urging the Chinese government to block this merger under the Chinese antitrust laws.
Source: HKET, October 22, 2020