TSMC to Invest Around $100 Million in Arm IPO

[T0@st]

Taiwan Semiconductor Manufacturing Company (TSMC) yesterday made the announcement that it has approved an investment in Arm Holdings Plc. The market leader in contract chipmaker is prepared to spend around $100 million, upon the UK-headquartered semiconductor design firm going public. Regulatory filing information has SoftBank Group aiming to raise about $4.87 billion with its initial public offering (IPO) of Arm. The listing has, so far, attracted a number of "cornerstone investors" including NVIDIA, Intel, AMD, Apple, Samsung Electronics and Alphabet.

Mark Liu, TSMC's chairman, stated last week that "Arm is an important element of our ecosystem, our technology and our customers' ecosystem. We want it to be successful, we want it to be healthy. That's the bottom line." The spending spree announcements also extended to something Team Blue related—TSMC declared that it has reached an agreement with Intel to purchase a 10% equity interest in IMS Nanofabrication Global, LLC. This deal is valued at roughly $432.8 million. Intel has already sold 20% of IMS to Bain Capital, but it still retains majority ownership—the two business deals valued IMS Nanofabrication at approximately $4.3 billion, according to an Intel statement.



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[thesmokingman]

This seems to be the trend now since regulators and the industry at large won't allow a single player to buy Arm outright. Thus they are all buying a chunk. Technically Arm is a horribad play since they don't make much profits yet the license holder still has much value. I was thinking the IPO wasn't worth it given the financials, but with every big Arm player buying a chunk this could be the crazy IPO of 23.