UK Regulators Could Oppose Nvidia (NASDAQ:NVDA) And Huawei’s Expansion Plans In Cambridge

Nvidia Corp (NASDAQ:NVDA) and Chinese smartphone company Huawei are planning to expand in Cambridge’s university city in the UK. However, there is uncertainty around the plans as the companies are meted with challenges they have to overcome to realize their dreams.

Recently Nvidia sounded a proposal to acquire Cambridge-based UK chip designer Arm for around $40 million. The US chipmaker plans to set up a state of the art artificial intelligence (AI) center in Cambridge. On the other hand, Huawei plans to construct a $1.3 billion research lab in Sawston just eight miles from the city center.

Regulators to could stop Nvidia’s acquisition of Arm

Cambridge is home to several tech workers and tech companies such as Amazon.com Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Microsoft Corp (NASDAQ:MSFT), which employ educated research teams in Cambridge.

Nvidia’s proposed to acquire Arm, considered the crown jewel in the UK tech industry, but regulators could hold up a deal. Arm’s chips are vital in almost all smartphones globally, and Chinese chipmakers are also asking Beijing to probe the deal, arguing that it will give Nvidia a lot of control over an important tech used in smartphones and data centers.

Last month, the UK government said that it is examining the proposed deal, and the competition and Markets Authority could also have a say on the issue. It is important to note that Hermann Hauser, the co-founder of Arm, was among the first to oppose the Nvidia deal, saying it will be a disaster for Cambridge and the UK.

Huawei faces uncertainty in the UK

On the other hand, Huawei was recently banned from building the UK’s 5G network despite receiving the green light to build its research lab from local authorities in June. The UK has banned Huawei infrastructure, with companies expected to do away with it by 2027. Things look more uncertain for the Chinese company after a parliamentary probe established collusion between the company and the Chinese Community Party.