Tuesday, June 13th 2023
Report Suggests Intel Considering Investment in Arm's Upcoming IPO
Reuters has been informed this week by a trusted insider source that the higher-ups at Intel Corporation are holding talks with Japan's SoftBank about becoming a possible anchor investor in the latter's initial public offering (IPO) of Arm. The British semiconductor and software design company was wholly acquired by the Japanese multinational investment holding firm in 2016. This was followed by a failed takeover bid by NVIDIA—six years later. Arm is aiming to sell its shares via Nasdaq in Q3 or Q4 2023, with a goal of raising around $8 - $10 billion. It also formulated plans to adjust pricing models earlier this year, with news reports labelling the strategic act as an attempt to rake in more royalties.
Intel and Arm have already formed a relationship in recent times—thanks to the development of the former's low-power compute system-on-chips (SoCs). These are set to be built on Intel Foundry's 18A process. The two companies have signed a multi-generation agreement to collaborate on the design of a series of mobile chipsets as an opening product range—diversified options will follow in the future. Arm is rumored (according to Reuters) to be working on its own proprietary chip, but the deal with Intel allows it to use its partner's "open system foundry model."
Source:
Reuters
Intel and Arm have already formed a relationship in recent times—thanks to the development of the former's low-power compute system-on-chips (SoCs). These are set to be built on Intel Foundry's 18A process. The two companies have signed a multi-generation agreement to collaborate on the design of a series of mobile chipsets as an opening product range—diversified options will follow in the future. Arm is rumored (according to Reuters) to be working on its own proprietary chip, but the deal with Intel allows it to use its partner's "open system foundry model."
11 Comments on Report Suggests Intel Considering Investment in Arm's Upcoming IPO
Imagine Nvidia right now with AI if they had bought ARM. Imagine the royalties they'd be charging. Think like what they do to gamers times a bajillion.
A sixopoly in the world dominated by monopolies, duopolies and triopolies doesn't seem half bad. Moreover, it's quite likely that AMD and NVDA are bringing their dollars to the pre-IPO party, too.
ARM is looking into expanding into manufacturing their ows chips to compete with qualcomm, mediatek and everyone else using their IP in one form or another, having several large companies with a vested interest on the ISA own the company can help prevent a situation like the x86 duopoly except this could become a pure monopoly if ARM decided to stop licensing their IP in the future.
/s
they are monopolies, it’s just hidden behind a facade of company names.
Vanguard in particular is also a special case since the company is not owned by a couple dozen shareholders, vanguard is owned by their customers - that his whoever buys their ETFs and other mutual funds, which again can be other funds or average joes like you or me (I know I own my tiny share for example)
The percentage being similar for Intel, Amd or Nvidia makes sense as the companies also have a similar weight on various indexes that are often the base for the ETFs BlackRock and Vanguard specialize in (sp500, ndx100, soxx, world stock market, etc.)