SoftBank, Will It Also Divest Semiconductor Design Company ARM?

Revealing Plans to Overcome Management Difficulties Through $41 Billion Asset Sale
ARM Keeps Options Open Including Sale and IPO

[Asia Economy Reporter Naju-seok] Japan's SoftBank Group is reportedly considering the sale of the UK semiconductor design company ARM. SoftBank, which announced plans to overcome management difficulties through asset sales worth $41 billion (49.34 trillion KRW), is attracting attention as to whether it will put ARM up for sale following the sale of its stake in the US telecommunications company T-Mobile.

The Wall Street Journal (WSJ) reported on the 13th (local time), citing sources, that SoftBank is reviewing asset sales including the full sale of its stake in ARM. The methods of asset sales being discussed include full stake sales, partial sales, and IPOs. Investment bank Goldman Sachs is reportedly acting as an advisor. The review is still at an early stage, and the possibility that SoftBank may not proceed with the sale of ARM assets remains open.

ARM is a company that SoftBank acquired 100% of its shares in 2016 for $32 billion and is strong in mobile chip design. At the time of the acquisition, SoftBank Chairman Masayoshi Son made headlines by saying "I'm glad to have bought it cheaply," despite paying 50% more than the market price. SoftBank has also expressed plans to pursue an IPO for ARM at an appropriate time.

The background for SoftBank's consideration of monetizing ARM through disposal is due to demands from the US activist hedge fund Elliott Management for share buybacks. SoftBank has already announced plans to sell 188 million shares of T-Mobile. In addition to ARM, SoftBank holds stakes in Chinese e-commerce company Alibaba and is now entering a period of deliberation over asset sale plans.

Recent changes have also been detected in ARM's core business areas, drawing attention to how this relates to SoftBank's future business plans. At the time of acquisition, Chairman Son mentioned ARM's Internet of Things (IoT) technology and referred to a "paradigm shift." However, ARM has not produced visible results related to IoT since the acquisition and has transferred two business divisions to SoftBank affiliates, deciding to focus on semiconductor design.

ARM's technology is prominent in supercomputers and personal computers (PCs). In the world’s top 400 supercomputer rankings announced last month by the International Supercomputing Conference, Japan's Fugaku took first place, with ARM participating in its development. Apple also announced plans to replace Intel processors used in Macs with ARM-designed chips within the next two years.

This content was produced with the assistance of AI translation services.