The U.S. Federal Trade Commission has taken legal action to block Nvidia’s $ 40 billion acquisition of ArmBank, which is now owned by SoftBank, citing antitrust issues.
The deal has been under scrutiny by regulators since its announcement in 2020. The FTC blockade is the biggest hurdle it could face and could potentially lead to its collapse.
“The proposed vertical agreement would give one of the largest semiconductor companies (chips) enormous control over computing technology and the plans on which its competitors rely to develop their own competing chips,” the FTC said.
Nvidia was up about 2% before the announcement of the news and did not differ much afterwards. The content of the FTC lawsuit has not yet been made public.
Arm is a key supplier of “architecture” technology to most semiconductor companies. The Arm instruction grid is at the core of almost all processors used in smartphones around the world, including those of Apple, but also Android devices that use Qualcomm chips.
The role of the company, however, has always been that of a “neutral” supplier, and now there are concerns that Nvidia could exclude competitors from what is absolutely necessary for them Arm technology.
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Source From: Capital
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