Tech Titans, Including Samsung, Apple, and Google, and More Acquire Billions in ARM’s Public Shares
hina ARM, the renowned chip designer, made significant waves last month by taking the first steps toward going public with the filing of an IPO. This strategic move has garnered substantial interest from some of the tech industry’s heavyweights, promising a remarkable transformation in the semiconductor landscape.
Initial estimates suggest that ARM’s impending IPO could yield a valuation ranging from $50 billion to $55 billion. SoftBank, the conglomerate behind ARM, intends to retain 90% of the company’s shares, with the remaining 10% earmarked for partners who wish to join this exciting venture.
Notably, one of the standout partners expressing interest is Nvidia, a well-known player in the tech industry. Nvidia had previously attempted to acquire ARM for $40 billion in a 2020 deal that faced regulatory hurdles and was subsequently abandoned. Their involvement signals a renewed interest in ARM’s future prospects.
Joining the ranks of ARM backers are tech giants like Apple, Alphabet (parent company of Google), and Samsung, all of whom have a strong stake in the ARM-based device ecosystem. Additionally, the list includes two formidable x86 architecture leaders, Intel and AMD, underlining the broad industry support for ARM’s potential.
The participation of Cadence Design Systems and Synopsys, renowned semiconductor design companies, adds further depth to the partnership. And while the list of partners is impressive, there is room for additional entities to join, potentially expanding the collaborative effort.
However, not all tech giants are on board. Amazon, initially considering investment in ARM, has chosen to withdraw its plans. This decision is intriguing, given Amazon’s involvement in designing Gravitron processors for its AWS servers, which aligns with ARM’s expertise. Nevertheless, their absence does not significantly impact the consortium’s goals.
One notable absentee is Qualcomm, despite previous discussions about forming a consortium to pursue ARM acquisition. It’s crucial to note that these new shareholders will not gain direct control over ARM’s board or strategic direction. Instead, the primary objective appears to be creating a protective barrier to prevent any single company from securing full control of ARM, a scenario reminiscent of Nvidia’s prior attempt.
As ARM’s IPO journey progresses, it is poised to reshape the semiconductor industry and foster collaboration among tech giants, promising exciting developments in the world of chip design and technology innovation.
