By Stephen Nellis and David Shepardson
SAN FRANCISCO/WASHINGTON (Reuters) -The U.S. Federal Trade Commission on Thursday sued to block U.S. chip supplier Nvidia Corp’s planned $50 billion-plus acquisition of British chip design provider Arm.
The FTC said the proposed vertical deal would give one of the largest chip companies control over computing technology and designs that competitors rely on to develop their own competing chips.
Arm, Britain’s most important tech company that was sold to Japan’s SoftBank in 2016, licenses its blueprints to major chipmakers such as Apple, Qualcomm and Samsung Electronics, underpinning the global smartphone ecosystem.
Nvidia said “as we move into this next step in the FTC process, we will continue to work to demonstrate that this transaction will benefit the industry and promote competition.” Arm declined to comment.
(Reporting by Stephen Nellis in San Francisco, David Shepardson in Washington and Kanishka Singh in Bengaluru, Editing by Rosalba O’Brien)
