US Sues To Block Chipmaker Nvidia's $40 Bn Merger With UK's Arm

US regulators filed a lawsuit Thursday to block the $40-billion merger of graphics chip star Nvidia with mobile chip technology powerhouse Arm Ltd, fearing it would undermine competition. The move comes as US President Joe Biden strives to ramp up domestic chip production to ease American industry's reliance on imports. "The proposed vertical deal would give one of the largest chip companies control over the computing technology and designs that rival firms rely on to develop their own competing chips," the Federal Trade Commission said in a release, calling chips "critical infrastructure." The world faces a global shortage of semiconductors, choking production of a wide range of products including automobiles, sending new and used car prices surging. The FTC echoed concerns expressed about the merger by regulators in the United Kingdom, who recently ordered an in-depth probe of the take-over.