Arm AI chips release

SoftBank is in discussion with contract manufacturers including Taiwan’s TSMC to produce the AI chips, the report added. UK-based Arm will set up an AI chip division and aim to build a prototype by spring 2025. Mass production will be handled by contract manufacturers and is expected to start in the autumn of 2025 as per report.

SoftBank Group’s Arm Holdings plans to develop artificial-intelligence (AI) chips, seeking to launch the first products in 2025.

Softbank’s Arm AI chips

Arm will pay for initial development costs, which may total hundreds of billions of yen, with SoftBank also contributing, the report said.

Once a mass-production system is established, the AI chip business could be spun off and placed under SoftBank, the newspaper said, adding that SoftBank is already negotiating with Taiwan Semiconductor Manufacturing Corp (TSMC) and others over manufacturing, looking to secure production capacity.

Arm’s technology

Arm which designs the fundamental architecture upon which the chips are built. After building the chip it sells licenses for its designs to companies such as Qualcomm and Nvidia, while charging royalty fees on each sale they make. The company claims 99% of premium smartphones are powered by Arm technology.

The company will bear the initial development costs of the AI chips, which could reach “hundreds of billions of yen,” according to the report. After a mass-production system has been set up, Arm’s AI chip business could be “spun off and placed under SoftBank.”

Arm’s valuation

Arm shares have risen nearly 45% so far this year, and its market capitalization stands at over $113 billion, according to LSEG data. The company was acquired by SoftBank in 2016 for $32 billion, and was listed on the Nasdaq last year.

Reduce dependency Nvidia

The British chip designer, which licenses its chip designs and earns funds through royalties, has been expanding into the data-center market, where operators are looking to build their own chips to power new AI models and reduce their reliance on dominant supplier Nvidia.

SoftBank’s Arm

SoftBank founded and helmed by Japanese billionaire Masayoshi Son, is betting big on AI and reportedly plans to invest $960 million by next year to boost its computing facilities for generative AI. In June, Son said SoftBank wants to “be [in] the leading position for the AI revolution.”

SoftBank is looking to build AI data centers, powered by homegrown chips, across the U.S., Europe, Asia and the Middle East as soon as 2026, Nikkei said.

SoftBank is expected to slip back into the red when it reports earnings on Monday. Investors are eagerly awaiting clues about new growth investments as the company has ample liquidity and can monetize its huge holding in Arm, whose share price roughly doubled in February on excitement over AI.

 Arm’s shares

Bets that Arm will benefit from a surge in AI computing have doubled its share price since its IPO last September. Giving it a market value of more than $100 billion. Arm shares closed trading last week at $108.84, after gaining 5.1% during Friday’s session.

The post SoftBank’s Arm Aims AI Dominance with Planned Chips Launch appeared first on Industry Leaders Magazine.

ARM Holdings has established itself as a leading player in the semiconductor space. The company specializes in designing ARM-based processors, which are renowned for their efficiency, innovation, and cost-effectiveness. Unlike traditional processors, ARM-based processors are integrated components of a computer’s build, resulting in a more streamlined and compact design.

ARM processors have become ubiquitous in modern mobile devices, powering smartphones, tablets, and other consumer electronics. Major tech companies such as Qualcomm, Samsung, and Apple rely on ARM’s processors to deliver exceptional performance and power efficiency to their products. 

Go through the timeline to check if you have missed any important changes and decide if you should buy in the ARM IPO or sit it out. 

Featured

ARM IPO: Should You Buy In?

ARM Holdings is set to go public with its IPO in 2023. In this article, we’ll take a closer look at the company’s business, financials, and prospects. Don’t make a move on the ARM IPO without reading this comprehensive analysis.

byPriyansha

Jan 02, 2023

Featured

Will the Arm IPO Debut on the London Stock Exchange?

The UK is ready to give an arm and a leg to have the chipmaker call the LSE home.

Featured

Arm IPO to List Exclusively in the US

The UK is hopeful that its reforms will attract other tech stocks.

Featured

Softbank’s ARM IPO: Biggest Tech IPO of 2023

ARM won’t have to disclose the proposed size and price of the share sale until later filings with the U.S. SEC.

The Road to ARM’s IPO: A Detailed Timeline

To truly appreciate the significance of SoftBank’s ARM IPO, let’s take a comprehensive look at the timeline of major milestones that have paved the way for ARM’s IPO.

1998 – 2016

ARM Holdings began publicly trading shares in 1998 under the ticker ARMH. After SoftBank purchased the company for $32 billion, ARM went radio silent in the stock market, dovetailing as a privately owned company.  

2017

In March and July, ARM Holdings introduced two major initiatives named DynamIQ architecture and Project Trillium, fixating on advancing AI and machine learning (ML) technologies for mobile phones. In September, Apple announced its partnership with ARM processors, unveiling the new iPhone X geared with an ARM-based A11 Bionic chip. 

2018

ARM introduced 2 processors, including the Cortex-A76AE, designed especially for safety-critical applications such as autonomous vehicles.  

2019

By June, ARM had launched 3 new processors, targeting next-generation devices, IoT, and embedded applications for enhanced security, performance, and efficiency. 

At the end of July, SoftBank Group was reportedly contemplating ARM IPO, in a bid to raise funds to reduce debt. However, no concrete plans were announced. 

2020

In April, reports surfaced that either an ARM IPO could take place or a potential sale. SoftBank Group confirmed its intentions to pursue divesting ARM shares through an IPO in September, as a part of its broader strategy to magnify the value of ARM Holdings. 

On 21st September, Nvidia Corporation announced its intention to acquire ARM Holdings for $40 billion. 

“Uniting Nvidia’s AI computing capabilities with the wide ecosystem of ARM’s CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars, and robotics, to edge IoT, and expand AI computing to every corner of the globe”.

– Jensen Huang, Nvidia CEO

The takeover would take up to 18 months to complete. Anticipating opposition to the ARM-NVDA deal, Huang tried to woo the UK government by promising to build a supercomputer and AI research center in Britain. 

2021

In January, the UK’s CMA (Competition Market Authority) scrutinized the proposed takeover with various countries weighing in on its impact on the global chip market. The CMA sought whether ARM would have an incentive to withdraw, raise prices, or reduce the quality of its IP licensing services to Nvidia’s rivals. 

“The combination of Arm and Nvidia is a better outcome than an IPO. The level of investment that will be needed to lead in AI will be unprecedented.”

– Simon Segars, ARM CEO

In February, tech giants including Google, Microsoft, and Qualcomm raised objections to the US Federal Trade Commission (FTC) claiming that the Nvidia-ARM acquisition would harm competition in the semiconductor industry. The FTC opened an investigation. 

In June, Nvidia requested Chinese antitrust authorities to give a green light to the acquisition (ARM’s largest market is China), but leading Chinese manufacturers opposed the takeover citing the increased control that the US would have over the ARM designs. 

SoftBank Group announced it was putting a pause on the plans for the ARM IPO in September. 

“We contemplated an IPO but determined that the pressure to deliver short-term revenue growth and profitability would suffocate our ability to invest, expand, move fast, and innovate.”

By October, the EU (European Commission) also announced its investigation into the NVIDIA-ARM deal, pointing to harming competition in the semiconductor industry.

In December, the US FTC announced that it was suing to block the Nvidia-ARM takeover. 

2022

In February, Nvidia and ARM Holdings conceded defeat in completing the takeover, but not without hitting back at critics claiming to tinker with the neutrality.

“Trying to foreclose ARM licensees would immediately reduce ARM’s revenue, which damages Nvidia’s investment. No rational publicly traded entity embraces such a self-defeating strategy.”

SoftBank revealed its plans to relist ARM in the public market by the year ending in March 2023. Following the collapse of the deal, Nvidia paid $1.25 billion to SoftBank, as a non-refundable deposit. The collapse triggered a shakedown at ARM and ended with Rene Haas taking over as CEO from Simon Segars, ending his 30-year association with ARM. 

2023

The tech industry is non-existent in the IPO market. In August, SoftBank’s ARM IPO was filed with the SEC, initiating the IPO process with the F-1. While the ARM Holdings IPO date is not announced, analysts believe early September is the right window for the biggest tech IPO of 2023. If you’re considering how to buy ARM IPO, it is advisable to go through all the implications and decide if investing in ARM financials is a good idea or not. 

The ARM IPO will be listed under the ticker symbol ARM on NASDAQ. In the past three years, ARM Holdings has achieved a commendable 16.2 percent CAGR. 

Unlike other AI businesses, ARM financials don’t rely on chip-making, but rather designing the technology for companies interlinked with AI tech, such as Nvidia and Apple. 

While ARM’s IPO presents an exciting opportunity, it is essential to exercise caution and conduct thorough due diligence before making any investment decisions. There are quite some risks in SoftBank’s ARM IPO, and one crucial thing to note is that SoftBank will not divest itself of the company, meaning that ARM’s majority voting power will lie with the company itself. 

However, ARM Holdings projected 2023 annual figures appear stable and replicable. The market environment in which these projections were formulated continues to persist. 

Overall, ARM’s financial numbers reinforce the company’s compelling narrative and its position as a dominant player in the semiconductor industry.

The post The Final Verdict on ARM IPO 2023: A Comprehensive Timeline appeared first on Industry Leaders Magazine.

The ARM IPO could be near now that Softbank’s plan to sell the leading British semiconductor company to Nvidia has collapsed. The microchip designer could be the biggest IPO of 2023. Let’s take a closer look at ARM’s business, financials, and prospects to help you decide whether or not to buy into the IPO.

Overview of ARM Holdings

ARM Holdings is a leading semiconductor company that designs and licenses processor architectures and intellectual property (IP) for use in a variety of products including smartphones, tablets, and other consumer electronics. The company was founded in 1990 and has since become the dominant player in the mobile processor market, with its architecture used in over 95% of smartphones worldwide.

In addition to its core processor business, ARM also offers a range of other products and services including physical IP, software tools, and development services. The company has a strong track record of innovation, with over 3,000 patents granted or pending.

ARM’s Financials

ARM has consistently delivered strong financial results, with revenues and profits growing at a steady pace in recent years. In 2022, the company reported revenues of £1.9 billion ($2.5 billion) and a net profit of £689 million ($903 million). These results were driven by strong demand for ARM’s processor architectures and IP, as well as growth in its other product and service offerings.

ARM also has a strong balance sheet, with £1.6 billion ($2.1 billion) in cash and no debt. This gives the company financial flexibility and the ability to invest in growth opportunities.

Prospects for ARM

There are several factors that suggest ARM could continue to perform well in the future. First, the semiconductor industry is expected to grow as demand for electronics and connected devices increases. This trend is likely to benefit ARM, as its processor architectures and IP are used in a wide range of products.

Second, ARM’s business model of licensing its IP rather than manufacturing its own chips gives it a unique advantage. The company is able to generate stable, recurring revenues from its licenses while avoiding the costs and risks associated with chip production.

Finally, ARM’s strong track record of innovation and its large patent portfolio give it a competitive edge in the market. The company’s R&D efforts have resulted in the development of new technologies and products, which could drive future growth.

A Comprehensive Look at the Upcoming ARM IPO’s Risks

As with any investment, it’s important to consider the potential risks as well as the opportunities. Some potential risks to consider with ARM include:

Dependence on a few key customers: ARM’s revenues are heavily reliant on a few key customers, particularly in the smartphone market. This means that any changes in demand from these customers could have a significant impact on the company’s financial performance.

Intense competition: ARM operates in a highly competitive industry and faces competition from other semiconductor companies as well as new entrants with innovative technologies. This could put pressure on the company’s market share and pricing.

Intellectual property disputes: ARM’s business relies on its intellectual property, and the company could face legal challenges to its patents or other IP. This could lead to costly legal battles and could impact the company’s revenues and profitability.

Overall, ARM Holdings appears to be a solid investment opportunity. The company has a strong track record of financial performance, a diverse range of products and services, and a unique business model that generates stable, recurring revenues. While there are risks to consider, ARM’s strong balance sheet and patent portfolio provide some protection against these risks.

For potential investors, the decision to buy into the ARM IPO will depend on their individual risk tolerance and investment objectives. Those who are willing to take on a higher level of risk in exchange for the potential for strong returns may find ARM’s growth prospects attractive. On the other hand, those who prefer a more conservative approach may want to consider other investment options.

In any case, it’s important for investors to do their own due diligence and carefully consider the risks and opportunities before making a decision to buy into the ARM IPO. This may include reviewing the company’s financials, studying the semiconductor industry and ARM’s competitive landscape, and consulting with a financial advisor.

The post ARM IPO: Should You Buy In? appeared first on Industry Leaders Magazine.