Graphics firm Nvidia is reportedly planning to abandonits proposed $40bn (£31bn) purchaseof UK-based chip maker Arm.
According to a newBloombergreport, the video card giant has become frustrated with the lack of progress over winning approval for the acquisition from regulators, and has told its partners it does not expect the deal to close.
“We continue to hold the views expressed in detail in our latest regulatory filings — that this transaction provides an opportunity to accelerate Arm and boost competition and innovation,”Nvidiaspokesman Bob Sherbin said.
“We remain hopeful that the transaction will be approved,” a SoftBank spokesperson said in an emailed statement.
Cambridge-based Arm’s chip technology is behind most mobile devices including iPhone, Samsung’s smart phones andNintendo Switch.
Arm was previously purchased by Japanese conglomerate SoftBank in 2016 for around $32bn.
Arm owner SoftBank will now reportedly step up plans for an initial public offering as an alternative to the Nvidia takeover.
Nvidia’s proposed acquisition had attracted criticism from regulators. The U.S. Federal Trade Commission evensued to stopthe deal in December, arguing that Nvidia would become too powerful if it acquired Arm’s chip designs.
Following calls to ensure Arm remained in the UK,a government spokesmanpreviously said that any takeovers representing a threat to the country would be investigated.
Arm’s ex-presidenthad warned last August that the sale of the chip designer to another semiconductor company could put the wider tech sector “in jeopardy”.
