Arm Lining Up Major Investors for IPO

Arm, the SoftBank-owned chip design company, is attracting attention from major technology companies as it prepares to go public in September. Apple, Samsung, Nvidia, and Intel are reportedly planning to purchase stakes in Arm to become shareholders.

Arm, a British chip designer, holds a significant position in the technology industry. It specializes in licensing chip designs to companies, enabling tech giants to manufacture semiconductors in their own factories and customize them according to their requirements. Notably, Apple, Samsung, Nvidia, and Intel, which are among Arm’s biggest customers, are also investing in the company.

According to a report by Nikkei Asia, Arm will sell each of these companies few percent stakes to help stabilize its stock price. This move comes after Arm’s $40 billion acquisition deal by Nvidia fell through due to regulatory challenges. As a result, Arm CEO Rene Haas decided to file for an IPO and shifted the company’s focus towards other markets, such as licensing chip designs for cloud computing products.

“We have diversified our business by not only developing different products but also by addressing it through different parts of the business model strategy,” said Haas in an interview with Decoder. “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.”