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Chips in on a merger: The Arm-Nvidia case

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  • Perrone, Helena

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.

Suggested Citation

  • Perrone, Helena, 2025. "Chips in on a merger: The Arm-Nvidia case," International Journal of Industrial Organization, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:indorg:v:98:y:2025:i:c:s0167718724000857
    DOI: 10.1016/j.ijindorg.2024.103130
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    References listed on IDEAS

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    1. Marc Bourreau & Johan Hombert & Jerome Pouyet & Nicolas Schutz, 2011. "Upstream Competition between Vertically Integrated Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 59(4), pages 677-713, December.
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    4. Marie-Laure Allain & Claire Chambolle & Patrick Rey, 2016. "Vertical Integration as a Source of Hold-up," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(1), pages 1-25.
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    7. Michele Bisceglia & Jorge Padilla & Salvatore Piccolo & Shiva Shekhar, 2022. "Vertical integration, innovation and foreclosure with competing ecosystems," Post-Print hal-04931197, HAL.
    8. Bisceglia, Michele & Padilla, Jorge & Piccolo, Salvatore & Shekhar, Shiva, 2022. "Vertical integration, innovation and foreclosure with competing ecosystems," Information Economics and Policy, Elsevier, vol. 60(C).
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