In TSMC’s turn, Foxconn is interested in acquiring ARM

According to sources from the Nikkei Asian Review, SoftBank’s ARM sale is attracting some new potential buyers. This time is Apple’s leading partners, including chip outsourcing firm TSMC and electronics assembler Foxconn.

Earlier, sources also said that Apple was one of the first to show interest in SoftBank’s ARM deal, but then quickly withdrew due to concerns about antitrust agencies. permission.

After Apple, Nvidia is the next company to be interested in the sale and is by far the most enthusiastic about the acquisition of ARM, though the deal may well be a bit of a hit as it draws attention. antitrust regulators’ opinions. Currently, Nvidia has overtaken Intel to become the largest manufacturer in the US, while ARM’s chip designs are now popular around the world, in smartphones and many IoT devices.

But it is clear that not only regulators, the threat from Nvidia’s acquisition of ARM is attracting many other tech firms that have a reputation for wanting a part in the chip design firm.

Both TSMC and ARM are longtime partners as they help their customers test whether the new chip-making process by the Taiwanese tech firm can be applied to new mobile chip designs. by ARM or not. Companies like Apple, Huawei, and Qualcomm are all the biggest and most familiar customers of both companies.

Meanwhile, Foxconn, with a view to avoiding dependence on outsourcing orders for Apple or other companies, is trying to find new directions for itself. Semiconductor technology is one of three focus areas that Foxconn is aiming for over the next five years.

Foxconn currently owns its own chip design facilities, and as such, the Nikkei source said, the outsourcing company is also assessing the potential of an investment in ARM. Building capabilities in the semiconductor sector, chip design is becoming more and more important to Foxconn’s future growth, as it has just seen 2019 as the third consecutive year net profit declines.

Besides the names mentioned above, another notable name in the tech industry is Samsung also wants to participate in this deal. However, sources from Reuters said that the South Korean technology company only wanted to hold a small portion of ARM instead of holding the entire chip design firm in hand.

Even a source even said that a few banks have turned to the leading chip processing company in China today, SMIC to find out the possibility of joining this deal. However, with the current escalating trade tensions between the US and China, it is unlikely that this will come true.

Four years ago, SoftBank withdrew its wallet to 32 billion USD to acquire ARM, and now that the chip designer’s influence has spread globally, SoftBank is sure to expect a huge profit. from this deal.

But selling ARM is just one option being considered by SoftBank. They are also looking at the possibility of re-listing ARM on the stock exchange early next year. Another option might be to sell SoftBank’s stake in ARM to a group of investors or companies. SoftBank still wants to maintain a stake in the chip design firm after it is sold, sources from Nikkei said.

Refer to Nikkei