Federal Trade The commission has sued semiconductor design firm Nvidia for blocking Arm’s acquisition, saying the blockbuster deal would unfairly stifle competition.
Holly Vedova, director of the FTC’s competition bureau, said in a statement: “The FTC is suing a chip consortium to block the largest semiconductor chip integration in history to block next-generation technology innovation pipelines.” “Tomorrow’s technologies depend on preserving today’s competitive, sophisticated chip markets. The proposed deal would distort Arm’s incentives in the chip market and allow the joint venture to unfairly undermine Nvidia’s competitors.”
Nvidia The first Announcement The purpose of achieving Arm In September 2020. At that time, The deal was worth 40 billion, But since then, Arm’s stock value has risen, and the cost of cash and stock transactions has risen to $ 75 billion. The FTC lawsuit threatened to cancel the deal altogether.
“As we move forward with this next step in the FTC process, we will continue to work to demonstrate that this transaction will benefit the industry and promote competition,” an Nvidia spokesperson told Ars. “Nvidia Arm is committed to preserving the open licensing model and ensuring that its IP is available to all interested licensees now and in the future.”
The FTC The agreement is not the first government regulator to verify. In October, the European Union Announced that it was investigating the acquisition and last month UK officials They are concerned that integration will pose a threat to both competition and national security. Chinese regulators are also eyeing the deal, Nvidia said.
Much of the frustration surrounding the acquisition stems from the fact that, for most of its history, Arm Semiconductor has been a relatively neutral player in the world, offering access to its intellectual property to almost anyone willing to pay a licensing fee. Allegedly, the FTC called Arm the “Switzerland” of the semiconductor industry. Consumers fear an Nvidia-controlled arm will put them at the mercy of competitors, while Regulator Concerned that the acquisition would threaten to destroy a huge, prosperous ecosystem that relied on architecture.
Arm started as a niche semiconductor designer, offering low power Chips For embedded systems and for portable devices like Apple Newton and Palm Pilot. Over the years, as the performance of ARM chips has improved and the importance of power efficiency has increased, semiconductors have found their way into a wide range of devices.
Today, arm design and instruction sets are widely used, appearing on everything from mobile phones to servers, automotive airbag controllers, and supercomputers. Recently, ARM chips have begun to enter the PC world, increasing the pressure on Intel and AMD. Apple’s M1 chips The x86 has shown how competitive architecture can be with design, and others are beginning to follow suit. Earlier this week, Qualcomm announced a new Snapdragon processor, called the 8cx Gen 3, which will run an ARM-specific version. Windows.
Because ARM architecture is low-power and available to many different companies, chips have taken over the industry. Last year, companies sold 25 billion ARM chips, four times more than in 2010.
Nvidia Semiconductor has become an increasingly powerful player in the world. Its graphics cards became the main tool in machine learning and other artificial intelligence applications, and the company soon began selling chips. High performance computing. Its mobile Tegra chip, which licenses the design of the Arm, drives a series of smartphones and Tesla infotainment systems in the mid-2010s, and today they run inside the Nintendo Switch.