Qualcomm CEO says he would like to co-invest in ARM

Published On: June 2, 2022Categories: Latest News1.4 min read

Earlier, Nvidia failed to take over ARM, and then Intel CEO Pat Gelsinger and SK Hynix vice chairman Park Jung-ho showed a positive view on consortium-based ARM acquisition

Qualcomm CEO Cristiano Amon remarked that he would like to invest in ARM by forming a consortium with competitors and the consortium might completely take over ARM depending on its size.

Earlier, Nvidia failed to take over ARM, and then Intel CEO Pat Gelsinger and SK Hynix vice chairman Park Jung-ho showed a positive view on consortium-based ARM acquisition.

The Qualcomm CEO’s remarks during his May 30 interview with the Financial Times have to do with the fact that ARM’s intellectual properties are irreplaceable and quasi-public properties in use in most semiconductor production processes. Since 1990, ARM has sold its chip designs to almost every chip manufacturer, including Samsung Electronics, Apple and Qualcomm.

In the meantime, SoftBank is working on ARM IPO after the failure and this is causing increasing concerns.

A certain investor becoming the largest shareholder in ARM with its capital power will result in its control of ARM, said an industry source, adding, however, this can be blocked by the co-investment proposed by Qualcomm.

We have had no discussions at all on the matter with SoftBank, the Qualcomm CEO said, adding, although our top preference is consortium-based equity investment, the possibility of the takeover does not have to be ruled out, and a larger number of consortium members will be better because the independence of ARM will be further guaranteed in that case.

With the enterprise value of ARM continuing to rise based on the soaring global chip demand, SoftBank is aiming to go public with it in summer next year. The U.K. government is trying to keep it in the U.K. stock market and the probability of the IPO is currently rather low given the current global stock market conditions.

About the Author: Jonathan Adams

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