FTC Chair Considers Antitrust Action Against Chip Giants
FTC Chair Andrew Ferguson is weighing antitrust measures against semiconductor companies to combat soaring AI chip prices and prevent the formation of bottleneck monopolies.
Federal Trade Commission Chair Andrew Ferguson is considering antitrust actions against semiconductor companies to address soaring chip prices, which he described as "crazy." Ferguson identified the maintenance of competitive markets for AI raw inputs as his top antitrust priority to prevent "bottleneck monopolies" from inflating costs for downstream users.
This regulatory scrutiny follows reports that Nvidia may increase prices by at least 15% next year, while Amazon recently implemented a 60% price hike for major hardware products. Ferguson specifically warned that a hypothetical merger between Nvidia and ARM would face intense scrutiny. Simultaneously, Samsung, SK Hynix, and Micron are facing a class action lawsuit alleging a conspiracy to restrict DRAM supply, which reportedly drove prices up 697% between 2022 and 2026.
In a related effort to stabilize domestic supply, Senator Bernie Moreno has urged Commerce Secretary Howard Lutnick to restrict chip exports. Moreno argues that such restrictions are necessary to protect the American auto industry from continued supply delays and high costs.
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