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North America

Arm Holdings to face US antitrust probe over chip licensing

Bloomberg reported that the US Department of Justice is preparing an antitrust probe into Arm Holdings' chip-licensing practices. The British firm's designs power most of the world's smartphone processors and a growing share of data-centre silicon.

Silicon wafer on a semiconductor fab clean-room line
Photo: Adrien Olichon / Pexels
Investing.com US2 h agoARM NVDA

The US Department of Justice's antitrust division is preparing to open a formal investigation into how Arm Holdings licenses its chip architecture to rivals and customers, Bloomberg reported on Friday. The review will focus on contractual terms applied to licensees.

Arm's designs sit inside roughly 99 percent of the world's smartphone processors and have recently expanded into data-centre servers run by Amazon and Microsoft. The company collects per-device royalties under its licensing model and has reworked its pricing structure in the past two years.

The probe forms part of a broader US regulatory push on concentration in the AI hardware supply chain. After Nvidia's failed bid for Arm was abandoned in 2022, the Justice Department said it would continue monitoring competition issues in the sector closely.

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This article is an AI-curated summary of the original story published by Investing.com US. The illustration is a stock photo by Adrien Olichon from Pexels and is not from the original story.

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