London is renowned as the tech capital of England. Various tech companies such as Microsoft and Amazon are utilizing its best teach research teams to power the hardware and digital world. Two tech companies that are witnessing the regulatory uncertainty are American chipmaker Nvidia and Chinese hardware manufacturer Huawei.
Nvidia Might Face a Tough Scrutiny from UK Lawmakers
Last month, Nvidia announced the acquisition of Softbank-backed chipmaker Arm for a whopping USD 40 Billion. The company issued a statement about establishing an AI research center in Cambridge, UK. It intends to expand its AI’s capabilities with help of Arm’s CPU and eventually leverage its market position in the world.
Simon Segars, CEO of Arm, said that it’s expecting tough scrutiny from China over the deal. Just not only China, the IT experts believe that the UK government should intervene in the ARM sale. According to the poll ran by BCS, The Chartered Institute for IT, 70% of IT experts say that government should look into the deal under the Enterprise Act.
The co-founder of Arm Hermann Hauser said that the Nvidia deal is an “absolute disaster”. He says that as it will become Nvidia’s arm, all the decisions would be taken from the US and not from Cambridge. The critics of the deal are asking Nvidia for legal commitments which conveys that it will protect U.K. jobs. Nvidia says that it doesn’t hesitate to fulfill such commitments.
To ensure that Nvidia doesn’t access confidential information from Arm’s customers, Arm said that it will “keep the firewalls up between the two companies,” Rene Haas, president of Arm’s IP Products Group, told Reuters.
Huawei Accused of Collision with Chinese Government
In June 2020, the UK government was granted permission to build its R&D facility in Cambridge. The Chinese tech company said that it will invest £1 Billion in the first phase of development and would create 400 jobs. As soon as the facility is in operation, it will become Huawei’s headquarters for the optoelectronics business.
Fast-forward one month, the UK government announced that it is banning Huawei from its 5G networks. This means that UK network operators would be banned from using the company’s equipment. It also added that they will be removing Huawei’s 5G kit from its network infrastructure by 2027. Now, the British parliament said that they have found evidence that establishes that Huawei has colluded with the Chinese communist party.
“The West must urgently unite to advance a counterweight to China’s tech dominance,” Tobias Ellwood, chairman of the Defence Committee, said. “We must not surrender our national security for the sake of short-term technological development.” However, Huawei responds that the report claims lack credibility and it is built on baseless opinion than facts.
“It is built on opinion rather than fact. We’re sure people will see through these groundless accusations of collusion and remember instead what Huawei has delivered for Britain over the past 20 years,” a Huawei spokesman said. Earlier, American President Donald Trump had warned its allies that if they allow Huawei to be part of their tech system, it can result in putting the national security in a vulnerable position.