Nvidia's Arm Holdings takeover gets vote of support
Three top chipmakers have expressed support for Nvidia's controversial $40bn takeover of Arm Holdings. But it could still fail. Matthew Partridge reports


Nvidia’s proposed $40bn takeover of British semiconductor group Arm Holdings, which is being sold by Japan’s SoftBank Group, received a boost after three of the world’s largest chipmakers “expressed support” for the “controversial” deal, says Priscila Rocha on Bloomberg. Broadcom Corp, MediaTek and Marvell Technology Group are the first customers of Arm to speak out in favour of the takeover. Their support undermines claims from rival Qualcomm and tech giants including Microsoft that Nvidia could use its control of Arm to “limit the supply of the company’s technology to its competitors or raise prices”.
The apparent endorsement from several leading chip firms comes at a “crucial time” for Nvidia’s planned takeover, says Jamie Nimmo in The Sunday Times. This is because the UK competition watchdog is now “preparing to deliver its judgement” on the deal following a review on both competition and national security grounds – a process that has “cast doubt” on the tie-up taking place. The deal is also in the process of being scrutinised by other regulators in Europe, the United States and China – opposition from any one of which could effectively veto it.
What the customers really think
Those who claim that the customers’ comments represent a full-throated endorsement of the deal are reading too much into them, says Dan Gallagher in the Wall Street Journal. If you look at what they say closely, their support “seems lukewarm at best”. While MediaTek’s chief executive Rick Tsai was quoted as saying that the chip industry “would benefit from the combination”, Broadcom’s CEO Hock Tan simply noted that “Nvidia has assured the industry” that it will grow its investment in Arm and continue licensing the technology on a “fair basis”. And while Marvell claims to be “supportive” of the deal, its CEO has also said that he “wouldn’t be sad” to see it collapse.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Furthermore, even if the deal manages to withstand scrutiny on competition grounds, there are other reasons why it could come unstuck, says Tony Owusu on TheStreet. Analysts at Citi reckon that there is only a 30% chance of the deal going ahead. This is because, in their view, opposition from China is still likely to be a major hurdle. Chinese firms claim that Arm’s acquisition by a US firm would make it much easier for Washington to pressure the company into stopping exports to China if relations between the two countries worsen.
If Nvidia’s takeover of Arm does fall through, then Arm could return to being a listed company, which it was before it was snapped up by SoftBank in 2016, says James Titcomb in The Daily Telegraph. US technology giant Qualcomm has said it could buy a stake in Arm “alongside a consortium of industry players” if its owner, SoftBank, were to float the company. Unsurprisingly, Nvidia argues that such a move “would hold back Arm’s development”.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Why now is the right time to invest in biotech
The biotech sector holds huge potential for investors, with strong growth and attractive valuations. Here's the best way to play it.
-
Zoopla: Busiest home buying May since 2021, but property asking prices slide
Buyers return to the market after the end of higher stamp duty thresholds and post-Easter lulls, but average sales are £16,000 below asking price
-
Investment opportunities in the world of Coca-Cola
There is far more to Coca-Cola than just one giant firm. The companies that bottle and distribute the ubiquitous soft drink are promising investments in their own right.
-
Streaming services are the new magic money tree for investors – but for how long?
Opinion Streaming services are in full bloom and laden with profits, but beware – winter is coming, warns Matthew Lynn
-
The next phase of the AI boom
The technology is about to become far more widespread, says Dan McEvoy. Here’s how to profit
-
'Pension funds shouldn't be pushed into private equity sector'
Opinion The private-equity party is over, so don't push pension funds into the sector, says Merryn Somerset Webb.
-
The strange world of quantum computing
If we can harness the potential of quantum physics, modern computers may come to seem like plodding calculators in comparison with the machines of the future
-
Greg Abel: Warren Buffett’s heir takes the throne
Greg Abel is considered a safe pair of hands as he takes centre stage at Berkshire Hathaway. But he arrives after one of the hardest acts to follow in investment history, Warren Buffett. Can he thrive?
-
Who will be the next Warren Buffett?
Opinion There won’t be another Warren Buffett. Times have changed, and the opportunities are no longer there, says Matthew Lynn.
-
Will Comstock crash – or soar?
Opinion The upside for Comstock, a solar panel-recycling and biomass-refining group, dwarfs the downside, says Dominic Frisby.