Chip designer Arm Holdings is facing an antitrust investigation by the US Federal Trade Commission (FTC) over its semiconductor licensing practices, adding to growing global regulatory scrutiny of the company’s business model.
According to Reuters quoting a Bloomberg report, the FTC is investigating whether Arm has attempted to illegally monopolise parts of the semiconductor market by potentially rejecting or downgrading licensing agreements tied to its chip blueprints used in CPU designs.
The report said the regulator had earlier this year informed Arm of the probe and instructed the company to preserve relevant documents as part of the investigation.
Arm generates a significant portion of its revenue by licensing its chip architecture technology to major technology companies including Nvidia and Apple, while also collecting royalty payments tied to the use of its designs.
Reuters said it could not independently verify the report, while both Arm and the FTC did not immediately respond to requests for comment.
The investigation comes amid broader international scrutiny of Arm’s licensing practices. South Korea’s antitrust regulator had previously investigated the company’s Seoul operations last November as part of a wider review into its market conduct.
