FTC Opens Antitrust Probe Into Arm Over Alleged CPU License Monopoly

Arm Holdings Plc, the British chip designer, is under antitrust investigation by the US Federal Trade Commission, Bloomberg reported on May 16, citing people familiar with the matter.

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. The agency informed Arm earlier this year that it had opened the investigation and ordered the company to preserve related documents.

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

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

Some in the industry view the move as more than business diversification. They see it as an attempt to vertically control the broader CPU supply chain as big tech companies ramp up 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 race to secure leadership in next-generation computing resources, from PCs to AI infrastructure, as demand for smartphone chips slows.

The FTC probe comes as scrutiny of Arm by regulators around the world expands. Qualcomm filed a complaint with the European Commission in 2024, alleging that Arm was restricting 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 2025 following Qualcomm's complaint.

Arm declined to comment on the investigation, but said Qualcomm's "baseless claims of anti-competitive conduct are nothing more than a desperate and unscrupulous attempt to gain leverage in a commercial dispute."

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

Go Jeong-sam, Hankyung.com reporter jsk@hankyung.com