US, FTC blocks a $ 40 billion “deal” in microchips
The world, in addition to the pandemic, is experiencing a crisis linked to the global shortage of chips. That shortage wreaks havoc on supply chains, including those of major car manufacturers such as GM. The auto giant has had to close some assembly lines until March. The United States and countries around the world they have committed to major investments to accelerate domestic chip production. But in the war, more or less underground, to have the future control of the microchip market has intervened Federal Trade Commission which blocked, with the addition of a lawsuit, what would have been the largest semiconductor acquisition in history.
Usa, a gigantic agreement between the American Nvidia and the British Arm
The $ 40 billion deal concerned the chip maker of Silicon Valley Nvidia who buy the British chip designer Arm. According to FTC officials, the deal would have created if it were successful an illegal monopoly capable of harming competition and final consumers.“The technologies of tomorrow – confirmed Commission number one, Holly Vedova– they depend on how well we can protect competitive chip markets. “The FTC lawsuit comes after months of scrutiny by US and European regulators. Nvidia he challenged the lawsuit, arguing that it “will continue to work to demonstrate that this transaction will benefit the entire sector and indeed will promote healthy competition”.
Usa, the war of the American Commission against the large concentrations on the chip market
The Control Commission has long been engaged in a “war” with stamped papers to block all those mergers that can stifle competition and influence final consumer prices. The Commission intends reduce industrial concentration processes in important and strategic sectors as in the case of Nvidia’s attempted takeover of Arm. An agreement between greats who want to get even bigger at the expense of others. In fact, Nvidia is currently one of the leading chip manufacturers for technology related to machine learning and artificial intelligence. Arm designs the high-performance chips that power smartphones and other gadgets. A mix that, if combined, could create a monopoly that is difficult for competitors to overcome.
Usa, Nvidia number one in the USA as a microchip manufacturer
Nvidia has overtaken Intel as a manufacturer of high-value chips in the US. Provides video game chip with heavy graphics, cloud computing and cryptocurrency mining. Nvidia CEO Jensen Huang when asked about the agreement he had declared that “it will create the main IT company in the era of artificial intelligence”. But the FTC still hadn’t intervened. Concern about the deal has come not only from the Regulatory Commission but also from tech giants like Alphabet, Qualcomm and Microsoft. The legal battle continues and so does the shortage of microchips worldwide.
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