Technology company NVIDIA wants to buy ARM semiconductor designer. This $40 billion deal was announced in September 2020. However, after the UK, the USA also opposed this decision. Recently, the US Federal Trade Commission (FTC) announced that it had launched an investigation against this purchase. According to the news today, the FTC sued NVIDIA.
NVIDIA – ARM agreement can lead to unfair competition!
The FTC has filed a lawsuit to block the $40 billion deal that Silicon Valley tech maker NVIDIA wants to buy UK-based chip designer ARM. Commission officials stated that the deal, which will be the largest semiconductor-chip merger in history, will cause big problems.
If NVIDIA buys ARM, things will turn in NVIDIA’s favor. The FTC is concerned about unfair competition in semiconductor manufacturing and rising prices for consumers. “Tomorrow’s technologies depend on maintaining today’s competitive, cutting-edge chip markets,” said Holly Vedova, director of the FTC’s competition bureau.
Meanwhile, both the FTC and European regulators have been examining the deal for a long time. GeForce, NVIDIA’s main family of graphics processor products, is a competitor to AMD’s Radeon products. In contrast, AMD uses ARM’s technology. In other words, if NVIDIA buys ARM, it will eliminate its biggest rival in this game.
NVIDIA’s spokesperson made a statement on the subject. He argued that the FTC will fight his case and that this acquisition of the company will benefit the industry. He also said they will continue to work to show that it will encourage competition.
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