ARM selling IoT division to Softbank to focus on designing chips
Image from Bloomberg
Sometimes, a company decides to cut off what it may deem unwanted excess to focus on more important things. That's what ARM is planning to do as it looks to offload its Internet of Things (IoT) divisions to SoftBank. This is so that the company can concentrate on what it's most famous for - designing chips for mobile devices and computers.
Yesterday, ARM announced that it has sent a proposal to SoftBank about the transference of two of its IoT businesses to companies run by the Japanese enterprise. As mentioned, the reason given by ARM is so that the company can focus on designing chips like its Cortex series CPU cores for mobile devices. Allegedly, without the extra IoT divisions, ARM would be in a "stronger position to innovate". As for SoftBank, its businesses can benefit from having their own IoT divisions.
Now, most of the time companies would hire more people to fill in roles in other divisions as required. But with many countries facing uncertain economic situations, large enterprises like ARM may have felt it prudent to keep the company slim, rather than continue to grow. Regardless, this deal is expected to be concluded by September 2020.
You may wonder what this means for us in general? Hopefully, faster development of ARM-based chips. Of course, it's really hard to say at this point. With that said, what kind of improvements would you like to see from ARM's CPUs? Discuss it on our Facebook page and stay tuned to TechNave.com for more news on the latest tech and gadgets.