Template-Type: ReDIF-Paper 1.0
Title: Chips in on a Merger: The Arm-Nvidia Case
Author-Name: Helena Perrone
Author-Email: helenaperrone@uni-mannheim.de
Classification-JEL: l4,k2
Keywords: vertical merger, foreclosure, holdup, ecosystems, semiconductor industry

Abstract: This paper analyzes the Nvidia-Arm vertical merger through the lens of the recent literature
in Industrial Organization. It explores potential competitive concerns surrounding
market foreclosure, technological access, and exclusionary behavior, considering the dynamic
semiconductor industry’s intricacies. Although limited public information is available due
to the parties halting the merger during phase two, I propose four theories of competitive
effects addressing issues such as vertical foreclosure in dynamic markets, stifling of innovation
due to hold-up concerns, and the ecosystem effects of the merger. This discussion sheds
light on the potential impact of this merger in the semiconductor industry on competition
in innovative high tech markets such as CPUs, datacenters, gaming consoles, and assisted
driving.

Note: 
Length: 16
Creation-Date: 2025-02
Revision-Date:
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp647
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2025_647