The UK’s largest trade Union, Unity, has strongly criticised the sale of ARM to NVIDIA. According to their assumptions, this will lead to the reduction of thousands of jobs.
Unity also appealed to the government to block the deal because of the potential threat of disrupting the growth of the country’s technology sector.
So do some politicians, in particular, and Edward Miliband.
Unions and politicians also don’t believe in NVIDIA’s long-term policy, with its promises to preserve the location of ARM’s headquarters and plans to build a research center in Cambridge with a supercomputer based on ARM processor systems.
They also suggest that after the full package of conditions for this deal comes into force, ARM’s UK operations will be curtailed and moved abroad.
“It would be crazy to put this at risk by allowing ARM to be put in the hands of a multinational Corporation that would benefit from its closure. Our members have serious concerns about the deal with Nvidia, which was not helped by the fact that ARM management kept them in the dark and deceived them, justifying that the sale is 18 months away, ” said Unite regional representative Matt Whaley.
Their opinion is also supported by Daniel Zeichner, the member of Parliament for the Cambridge district, and the issue has already been sent to the house of Commons.
UK laws can allow the country’s authorities to suspend any transactions with local companies for up to two months if they relate to national security. British Prime Minister Boris Johnson has stated his desire to preserve ARM as a company that makes a significant contribution to the country’s economy.
Historically, NVIDIA did not try to negotiate with ARM, the issue was resolved with their owner – Softbank.
The purchase amount will be $40 billion. Part of this amount Nvidia will transfer to the holding in the form of its shares ($21.5 billion), and part- ($12 billion) in cash, including $2 billion at the time of the deal with SoftBank. Further, the Japanese holding company may receive additional payments of up to $5 billion in cash or shares, taking into account ARM’s future earnings. Nvidia will pay the remaining $1.5 billion to ARM employees as an additional liability.
Its co – founder, British businessman Hermann Hauser, expressed his dissatisfaction with the transfer of ARM into the hands of Nvidia, and he did it in early August 2020. He said that Nvidia is not the right owner for ARM, and added that such a deal would inevitably lead to disaster in the industry. Hauser believes that the expected transition of ARM to NVIDIA ownership can radically change the situation and force developers to abandon the use of the ARM architecture. “Most licensees will become competitors of Nvidia, and in this case they will have to look for an alternative to ARM developments,” Hauser said.
What will it give to ordinary users? Participation in marketing wars does not threaten them; only the consolidation of a Corporation like NVIDIA by absorbing ARM will give the Corporation an opportunity to grow, and this may not always look like a blessing.