Arm Attracts Big Tech Firms as Investors for Promising Future

Leading tech firms, including Apple, Samsung, Nvidia, and Intel, are set to purchase stakes in Arm, the chip designing firm owned by SoftBank. Arm’s strategic role includes licensing chip designs, empowering tech giants to build semiconductors and tailor them according to their requirements.

The upcoming public offering in September has enticed interest from some of Arm’s key customers who have used Arm’s architecture for their chip manufacturing.

In this regard, Arm’s CEO Rene Haas said,

We have diversified our business by not only developing different products but also by addressing it through different parts of the business model strategy. We knew our business was going to be okay. All of the financial results you are seeing now, which are terrific and the team has done a fantastic job on, really come from work that was done a few years ago.

Furthermore, Nikkei Asia reported that Arm will sell every company stake worth “a few percent each” to stabilize its stock price. Arm revealed its plans in front of the public last year after Nvidia’s $40 billion deal to buy the company fell through due to “significant regulatory challenges.”

Rene Haas clarified in a September interview with Decoder that the decision to start an IPO was driven by the company’s expansion into new sectors, which include licensing chip designs for cloud computing solutions.

This year, Intel announced its collaboration with Arm to build chips using Intel’s 18A process. Simultaneously, Qualcomm, NXP Semiconductors along with other chip manufacturers are intending to counter Arm’s influence by promoting their own competitor chip architecture known as RISC-V.

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