For the Chinese Antitrust, the State Authority for Market regulation (SAMR), born only three years ago on the ashes of two previous Authorities, is the litmus test: it will have to express a binding opinion on a question formally presented on the record acquisition by 40 billion dollars of Arm, a sophisticated chip company born in Cambridge, from the Japanese parent company Softbank last September, by the big American semiconductor Nvidia. Arm has a branch, Arm China. The antimonopoly decision is expected in March. If the Antitrust gives the green light, the Chinese chip market will open up to the Americans.
Nvidia has also moved the pieces in China.
The chip world war moves to China. In particular, within the remit of the Chinese Antitrust, the powerful SAMR. The application was made recently and revealed by Nvidia’s Chinese lawyers, it will take 18 months, a decision could come, if all goes well, in March.
The point is: what will the Chinese Antitrust do? Very tough at home with the Fint Tech champions, from Alibaba to Tencent to JD.com, the Antimonopoly for the first time has such an important decision on the table that however concerns an American company that acquires the British company with a headquarters in China. The terrain for Nvidia in China has, so far, been very rough, also due to the refusal of the CEO of Arm China Allen Wu to step up, generating a chain of potential conflicts of interest. Not only. By giving the green light indirectly, SAMR would give the green light for Americans to enter the Chinese semiconductor market through Arm’s Chinese branch.
The Chinese variant of Arm
Of course, in February also the. American Federal Trade Commission has opened an investigation into the deal, which would lead to the integration of Arm products into Nvidia ones, also increasing Arm’s potential. A move also followed by other big semiconductors, however the Chinese variant is also at stake for Arm.
The Arm China team has always been unclear, in fact Allen Wu was the real arbiter of the situation, a CEO who among other things increased his personal fortune by 7.5 billion dollars and who obviously rowed against the deal .