Softbank, one of the world’s largest telecommunication conglomerate, just announced that they will agree to invest in ARM for USD 32 billion (~RM 127 billion). Just as a recap, ARM is the company that creates the basic chip building blocks for just about every mobile chipmaker out there.
While ARM does not create their own chip, its cores are being used in chips and SOCs of companies such as Qualcomm, Samsung, Apple, MediaTek, Broadcom, and hundreds more companies that licences the ARM architecture, chip design or even both from them. This UK-based company started in 1985, and now have customers all over the world.
SoftBank wants to own this influential company and is willing to pay a 43 percent premium on ARM’s stock price, for a total of USD 32 billion (or about RM RM 127 billion). SoftBank sees the ARM acquisition as a way to establish itself as a key player in the Internet of Things field, including mobile, smart homes, wearables, and automotive.
The question is will Softbank have any influence in the creation of the next generation ARM cores with this acquisition, or this is just a bankrolling to the very popular company and Softbank just wants a slice of the pie? We shall wait until the purchase is complete and more news comes out of this major purchase.
[Source]
COMMENTS