U.S. Sues to Block Nvidia’s $40 Billion Chip Takeover of Arm
- FTC says deal threatens to hinder innovation, raise prices
- The challenge comes amid chip shortage squeezing industries
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U.S. antitrust officials sued to block chipmaker Nvidia Corp.’s proposed $40 billion takeover of Arm Ltd., saying the deal would hobble innovation in semiconductors and undermine Nvidia’s rivals.
The Federal Trade Commission said in a statement Thursday that the acquisition would deliver Nvidia vast sway over the market by giving it control over chip designs used by the world’s biggest technology companies, including makers of smartphones, factory equipment and cars.