FTC sues to block Nvidia's $40 billion takeover of Arm2021-12-03 18:34 by DanielaTags: FTC, Nvidia, Arm
The Federal Trade Commission on Thursday sued to block US chipmaker Nvidia's proposed $40 billion takeover of UK chip design firm Arm, saying it would stifle competition and give the combined company too much control over chip technology and designs. "Semiconductor chips power the computers and technologies that are essential to our modern economy and society," the FTC said in a statement. According to its complaint, "the combined firm would have the means and incentive to stifle innovative next-generation technologies, including those used to run datacenters and driver-assistance systems in cars." Arm is a core supplier of architecture technology to most semiconductor companies. Its Arm instruction set is at the core of nearly all mobile processors powering smartphones, including those made by Apple and Android devices that use Qualcomm chips. Nvidia first announced its intention to acquire Arm in September 2020. At the time, the deal was worth $40 billion, but since then, Arm's stock price has soared, and the cost of the cash and stock transaction has risen to $75 billion. The FTC lawsuit threatens to scuttle the deal entirely. The FTC isn't the first government regulator to scrutinize the deal. In October, the European Union announced that it was investigating the acquisition, and last month UK officials said they were concerned that the merger would threaten both competition and national security. China's regulators are also looking into the deal, Nvidia said. Read more -here-
Post your review/comments
rate:
avg:
|