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© 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.EU investigates Nvidia's purchase of chip designer Arm
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Sven Asai
The bigger the better. In this field converging the best knowledge, expertise and investment power is a must. You just can’t shoulder the needed investments, development and production of the new necessary chips with only midsized or cool little garage sized startup companies as they might be preferred in the EU. Btw a reason why they are out or far behind all markets there, with only a few remaining knowledge bases at universities.
Paul
What China got to do with it?
Desert Tortoise
No. Goodness please read some economics before saying things like that. The world allowed tech companies to buy up newcomers with new technologies and look where that has us all now? A few giant companies dominate the market and dictate the terms of service and what we can view. They also are now able to make it very hard for an upstart to compete effectively with them. That, and monopoly rents, are the great dangers of looking the other way at market consolidation. Do not allow companies to combine like this. Make them compete head to head. That reduces price, increases output, prevents the accumulation of monopoly rents and prevents either from becoming lazy or selling poorly made products. With competition if a firm gets sloppy they get eaten alive by their competitors. Maximize competition. This is fundamental to achieving the benefits of a competitive market economy.
Desert Tortoise
Nvidia in all likelihood sells chips to Chinese manufacturers to use in their products. One of their chip manufacturers may want to retain Arm to design custom chips for their products but would not be able to if Nvidia owns them. They would be forced to go hat in hand, and pay out the hooter, to Nvidia for the chips they need. The Chinese concern is valid.