FTC Opens Antitrust Probe Into Arm Over CPU Licensing

Arm Holdings Plc, the British chip designer, is facing an antitrust investigation by the US Federal Trade Commission, Bloomberg reported.

Bloomberg reported on May 16, citing people familiar with the matter, that the FTC is examining whether Arm sought to illegally monopolize parts of the semiconductor market by refusing to provide central processing unit, or CPU, design licenses or by degrading their quality. Earlier this year, the agency notified Arm that it had opened the probe and ordered the company to preserve related documents.

Arm, whose largest shareholder is Japan's SoftBank Group Corp., has sold licenses for chip blueprints as well as its instruction set architecture, the code that allows software to communicate with processors. Major manufacturers including Qualcomm Inc. and Apple Inc. rely on the technology.

In March, however, Arm launched its self-developed artificial intelligence chip, AGI CPU, entering the business of directly selling its own chips. The company has said it could generate $15 billion in annual revenue within five years.

Some in the industry view the move as more than simple business diversification. They see it as an effort to vertically control the broader CPU supply chain as Big Tech sharply increases spending on AI infrastructure.

Qualcomm argues the plan underscores concerns that Arm could restrict access to its technology. The clash between the two companies also reflects a broader fight for leadership in next-generation computing resources, from PCs to AI infrastructure, as demand for smartphone chips slows.

The FTC investigation comes as scrutiny of Arm by global regulators widens. Qualcomm filed a complaint with the European Commission in 2024, alleging that Arm was limiting access to licenses and withholding core technology. South Korea's Fair Trade Commission also conducted an on-site inspection of Arm's Seoul office in November last year following Qualcomm's complaint.

Arm declined to comment on the investigation. It said Qualcomm's allegations of anticompetitive conduct are "nothing more than a desperate and self-serving attempt to gain leverage in a commercial dispute."

Arm shares have risen 82.3% this year, far outpacing the 63% gain in the Philadelphia Semiconductor Index.

Ko Jung-sam, Hankyung.com reporter jsk@hankyung.com