Thursday, January 27

NVIDIA had bought ARM, but it is still not theirs: the FTC is the last to oppose the operation, which it calls anti-competitive


In September 2020 the news broke: NVIDIA bought ARM for $ 40 billion. It was the most important operation in history in the semiconductor segment, and although both companies seemed to be clear that the agreement was a done thing, the regulators did not think the same.

In fact, more than a year has passed since the announcement and ARM is still not from NVIDIA. In recent months we have seen how the United Kingdom did not see the operation with good eyes and how the European Union was also going to investigate the agreement. Now it is the FTC of the United States that says that this looks bad, and that the deal would be anti-competitive.

ARM, increasingly distant from NVIDIA

Doubts from regulators around the world seem to make it clear that the deal is in serious trouble completing. The Federal Trade Commission, the regulatory body for these types of operations in the United States, has finished suing that deal to block it.

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According to the FTC, the acquisition would give NVIDIA unjustified control of computing technology and on designs that rivals need to create their own chips. If the acquisition is approved, that mega-company could stifle next-generation technologies, regulators say.

NVIDIA, ARM and the uncertainty of a deal with many ramifications

In Engadget

NVIDIA, ARM and the uncertainty of a deal with many ramifications

NVIDIA responded to the lawsuit by stating that “we will work to demonstrate that this transaction will benefit the industry and promote competitiveness“.

As stated in the Wall Street Journal, it is not the first time that takeover deals have been blocked between smiconductor manufacturers. In 2018, Broadcom’s purchase of Qualcomm (which was going to pay $ 117 billion for it) was prevented.

Qualcomm itself was also blocked when it tried to buy NXP Semiconductors for $ 47 billion at the end of 2016: China said oranges from that country.

The truth is that the doubts about the acquisition of ARM by NVIDIA do not stop arriving, and with the current situation of the semiconductor market – shortage of chips included – the proposal seems to have it increasingly difficult.

Via | WSJ

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The news

NVIDIA had bought ARM, but it is still not theirs: the FTC is the last to oppose the operation, which it calls anti-competitive

was originally published in

Engadget

by Javier Pastor.



www.xataka.com