What Does the Abandoned ARM Acquisition Mean for NVIDIA’s Automotive Ambitions?

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By James Hodgson | 1Q 2022 | IN-6448


A Troubled Process


In February 2022, it was announced that the US$40 billion acquisition of ARM by NVIDIA, first announced in September 2020 would be abandoned. The acquisition process had been apparently struggling to secure the approval of national governments, with regulators in the EU and UK citing concerns over the impact of the acquisition on semiconductor prices and innovation. With many Advanced Driver Assistance Systems(ADAS)/Automated Vehicle (AV) processors featuring silicon based on ARM IP, some regulators were concerned about the prospect of NVIDIA having control over key enabling components in their competitors’ designs. In December 2021, the US Federal Trade Commission sued to block the acquisition, specifically citing concern over the impact on autonomous driving/self-driving System on a Chips (SoCs) and networking silicon.

Given NVIDIA’s and ARM’s individual successes in a variety of consumer devices and enabling technologies, the abandonment of the acquisition is likely to impact on a wide range of end markets, including the automotive industry.


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