Arm Holdings to face US antitrust probe over chip tech, Bloomberg News reports

Arm Holdings to face US antitrust probe over chip tech, Bloomberg News reports

May 15 (Reuters) - Arm Holdings is facing an antitrust probe by the U.S. Federal ‌Trade Commission over the British chip designer's ‌licensing of its semiconductor technology, part of ongoing global scrutiny ​of the business, Bloomberg News reported on Friday.

Reuters

The FTC is investigating whether Arm is trying to illegally monopolize parts of the semiconductor market. It is ‌looking to assess ⁠if Arm will reject or downgrade the licensing agreements for its chip blueprints ⁠used to design central processing units, the report said, citing people familiar with the matter.

Earlier this ​year, the ​US regulator notified Arm ​of the investigation and ‌demanded the company preserve documents, according to Bloomberg.

A big portion of Arm's revenue comes from licensing its technology to companies such asNvidiaandAppleand collecting royalty payments on design use.

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Reuters ‌was not able to verify ​the report. Both Arm ​and the FTC ​did not immediately respond to Reuters ‌requests for comment.

Regulators outside the ​U.S. are ​also probing Arm's practices.

South Korea's antitrust regulator was investigating the Seoul offices of Arm in ​November, as part ‌of ongoing scrutiny of the company's licensing ​practices.

(Reporting by Juby Babu in Mexico City; ​Editing by Shailesh Kuber)

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