FTC Sues to Block $40 Billion Semiconductor Chip Merger

Krenum

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https://www.ftc.gov/news-events/pre...es-block-40-billion-semiconductor-chip-merger

“The FTC is suing to block the largest semiconductor chip merger in history to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies,” said FTC Bureau of Competition Director Holly Vedova. “Tomorrow’s technologies depend on preserving today’s competitive, cutting-edge chip markets. This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals. The FTC’s lawsuit should send a strong signal that we will act aggressively to protect our critical infrastructure markets from illegal vertical mergers that have far-reaching and damaging effects on future innovations.”
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I agree with the FTC. Nvidia isn't around to "help" anyone with research and development, they are here to be the only player in town, by their own admission.
 

Zarathustra[H]

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grumpy-cat-good.png
 

Lakados

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This is going to go badly, the FTC can block the sale to NVidia but that just gives China more control because of the whole Allen Wu thing.

SoftBank wants to sell ARM, and the government can’t force them to keep it, if it’s not NVidia it’s going to be somebody. And it’s probably going to be ARM China now, and watch the FTC stand up to a Chinese state backed corporation.
 

tunatime

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This is going to go badly, the FTC can block the sale to NVidia but that just gives China more control because of the whole Allen Wu thing.

SoftBank wants to sell ARM, and the government can’t force them to keep it, if it’s not NVidia it’s going to be somebody. And it’s probably going to be ARM China now, and watch the FTC stand up to a Chinese state backed corporation.
Good maybe China will put out cheep gpus we can buy for MSRP....with nvidia we know we will get screwed
 

Lakados

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https://www.ftc.gov/news-events/pre...es-block-40-billion-semiconductor-chip-merger

“The FTC is suing to block the largest semiconductor chip merger in history to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies,” said FTC Bureau of Competition Director Holly Vedova. “Tomorrow’s technologies depend on preserving today’s competitive, cutting-edge chip markets. This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals. The FTC’s lawsuit should send a strong signal that we will act aggressively to protect our critical infrastructure markets from illegal vertical mergers that have far-reaching and damaging effects on future innovations.”
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I agree with the FTC. Nvidia isn't around to "help" anyone with research and development, they are here to be the only player in town, by their own admission.
No acquiring ARM would allow NVidia to expand their revenue stream via licensing out a whole backlog of patents they already have. NVidia develops their own ARM chips, they sell those chips, they design them from scratch. NVidia spends more and innovates more on their own ARM designs than ARM does, this would let them license that and turn a profit on it and turn that expense into an additional revenue stream.

The UK is concerned because the merger will mean the closure of many of the UK offices putting some 5000 high paying workers out looking for new jobs.

China wants to block it because they want to control it and if the NVidia merger fails ARM’s stock prices will plummet and they can snatch it up through various conglomerates, I’d say for closer to $12B than 40.

The FTC claims they are doing this to protect consumers, really they are working on behalf of Intel who has been lobbying heavily to stop the merger because they are terrified of it.

Projections clearly show the end of general CPU+GPU designs for enterprise and datacenter as they all move to special purposes custom builds. NVidia would completely dominate that market space and Intel would stand to loose 10’s of Billions a year should NVidia step into that ring seriously which this merger would catapult them into.
 

Jinto

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This is going to go badly, the FTC can block the sale to NVidia but that just gives China more control because of the whole Allen Wu thing.

SoftBank wants to sell ARM, and the government can’t force them to keep it, if it’s not NVidia it’s going to be somebody. And it’s probably going to be ARM China now, and watch the FTC stand up to a Chinese state backed corporation.

China doesn't care about ARM, they just want to be able to license. I'll bet you money that ARM China is not going to make any difference in this and certainly won't be buying its parent...
 

Lakados

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China doesn't care about ARM, they just want to be able to license. I'll bet you money that ARM China is not going to make any difference in this and certainly won't be buying its parent...
They won’t have too they just start selling their own competing license, it’s already been annexed, ARM China is its own independent company as far as the Chinese government is concerned. Though it does not have access to any of the ARMv9 licensing or designs, only ARMv8 but there is nothing stopping them from expanding on that and launching their own competing core designs.
 
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Armenius

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This is going to go badly, the FTC can block the sale to NVidia but that just gives China more control because of the whole Allen Wu thing.

SoftBank wants to sell ARM, and the government can’t force them to keep it, if it’s not NVidia it’s going to be somebody. And it’s probably going to be ARM China now, and watch the FTC stand up to a Chinese state backed corporation.
This. I can't see how anybody can think the FTC's intervention is a good thing.
 
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