The US Federal Trade Commission is investigating Arm Holdings over how it licenses its semiconductor technology, according to Bloomberg. Regulators are assessing whether Arm is trying to illegally monopolize parts of the chip market, including whether it could reject or downgrade licensing agreements for “chip blueprints” used to design CPUs. The FTC notified Arm earlier this year and asked the company to preserve documents. Arm declined to comment. The probe also runs alongside a dispute with Qualcomm after Arm accused Qualcomm of breaching a deal.
Arm Holdings expects higher first-quarter revenue thanks to strong demand for its AI chip technology, driven by rapid growth in data centers. Yet analysts are concerned because Arm hasn’t secured enough supply for its upcoming chip. Even so, Arm’s architectures power most smartphones worldwide, and its data center segment could become a major engine for future growth.
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