SoftBank CEO Son Wants to Talk with Samsung
SoftBank Group founder and CEO Masayoshi Son plans to meet with Samsung Electronics vice chairman Lee Jae-yong to discuss a potential strategic alliance between the South Korean tech giant and ARM, a U.K.-based chip designer owned by SoftBank.
"I'd like to talk with Samsung Electronics about a strategic alliance with ARM," Son said in a statement on Sept. 21. He is expected to visit Seoul in October.
On Sept. 21, Lee returned home from an overseas business trip and told reporters at Gimpo Airport, "Chairman Son will come to Seoul next month, and I think he will make an offer regarding ARM. Let’s see what will happen."
ARM is a powerful chip designing company. Its IP powers over 90 percent of the mobile phone chips worldwide. SoftBank Group acquired ARM for US$32 billion in 2016 and holds a 75 percent stake, with the remaining 25 percent owned by the group's Vision Fund.
Previously, Nvidia, a U.S. software and chip design company, attempted to acquire ARM in 2020, but failed due to regulatory hurdles. Since then, various Korean and foreign companies, including SK Hynix, Intel, and Qualcomm, have expressed interest in acquiring ARM. Currently, ARM's value is estimated at between 50 trillion won and 70 trillion won, but the possibility of a joint acquisition in the form of a consortium is growing due to concerns over monopoly.
Industry insiders say that Son may recommend Samsung’s equity investment in ARM rather than a direct acquisition of the company. After Nvidia's failure to buy ARM, SoftBank has been seeking an initial public offering (IPO) of ARM. SoftBank has announced that it will list ARM on the New York Stock Exchange by the end of March 2023. However, the U.K. government wants SoftBank to list ARM on the London Stock Exchange.