Samsung to Hold Talks with SoftBank for “Strategic Partnership” with ARM

To negotiate future strategic cooperation between ARM and Samsung, Masayoshi Son, the chairman of SoftBank and ARM Holdings, plans to travel to South Korea in October for the first time in three years, according to SoftBank.

According to Bloomberg, Son said through a SoftBank representative:

I am looking forward to the trip. I want to discuss a strategic alliance for Arm with Samsung.”

Although neither the CEO of SoftBank nor spokespeople for the business provided any more information, the simple mention of the meeting’s strategic importance and the fact that Masayoshi Son is coming alone soon sparked rumors that he intends to sell ARM to Samsung. Samsung Vice Chairman Jay Y. Lee, who confirmed the encounter, stoked further speculation.

After returning from a two-week European vacation, Lee spoke to the media on Wednesday at Gimpo Airport, according to the Korea Economic Daily.

When chairman Son comes to Seoul next month, he will likely make a sort of proposal about Arm,” 

A legal challenge to the merger by the U.S. Federal Trade Commission and a backlash from ARM’s clients like Qualcomm caused the proposed sale of ARM to Nvidia to fall through earlier this year. Following the transaction’s collapse, SoftBank concentrated on ARM’s initial public offering (IPO) on the New York Stock.

The SOX index is still at a roughly 12-month low, and given that processor and memory sales have recently declined more sharply than anticipated, there is little chance that they will soon increase again. SoftBank likely has valid concerns about its ability to demand a $60 billion value for ARM Limited in an early 2023 IPO. In this case, selling ARM to Samsung would be more profitable for SoftBank. In reality, the Japanese business may leverage talks with Samsung to raise the worth of ARM in the eyes of potential customers.

Image: ARM

The ARM is strategically significant to Samsung. The business leverages Arm-designed CPU architectures and cores in its system-on-chips for PCs, cellphones, high-end consumer electronics, and various other devices. In reality, ARM Cortex-R processor cores are used in Samsung’s SSD controllers, and their significance for the storage sector, one of Samsung’s key industries, will only increase in the years to come as storage improves its computational capabilities.

Samsung would become an overnight CPU and GPU powerhouse if it acquired ARM, which would be a relief for the business given that it has repeatedly failed to develop its own competitive ARM-based CPU cores.

Muhammad Zuhair
Passionate about technology and gaming content, Zuhair focuses on analysing information and then presenting it to the audience.