Apple & Samsung Invest in Arm Chip IPO

In recent news, Apple and Samsung Electronics are gearing up to invest in Arm, a chip design company under SoftBank Group. Arm is anticipated to go public with its initial public offering (IPO) in September, with a projected market value surpassing $60 billion. This move could potentially make it the largest IPO globally in 2023.

Reuters' June report mentioned that Arm is in talks with about 10 companies, including Apple, Samsung, and Intel, to introduce anchor investors for the IPO. Previously, Arm was in negotiations with NVIDIA, a U.S.-based chip design firm, for a significant investment in its New York listing.

Apple, Samsung, NVIDIA, and Intel all have plans to invest in Arm soon after it goes public. The company, a subsidiary of SoftBank, is expected to file for listing with the U.S. Securities and Exchange Commission later this month.

Arm intends to offer a portion of its shares to chip manufacturers. Despite SoftBank declining to comment and Apple, Intel, Samsung, and NVIDIA remaining tight-lipped, the anticipation around this IPO remains high.

Arm stands as the world's largest chip intellectual property supplier, contributing architecture for over 90% of global mobile chips. Following SoftBank's unsuccessful attempt to sell Arm to NVIDIA last year, the company is now dedicated to making Arm a publicly traded entity.

Reports suggest that Arm's U.S. listing could potentially raise between $8 billion to $10 billion. During the recent financial results conference, SoftBank's CFO hinted at smooth progress in preparations for the IPO, although exact details about the listing date and fundraising targets were not disclosed.

Despite an unexpected loss reported by SoftBank, the company is actively reinvesting in new ventures after its Vision Fund division turned profitable, marking a significant turnaround.