ARM Holdings Sells Majority Stake in China Chip Unit
British telecom chip giant ARM Holdings PLC said Tuesday it will sell a majority stake of its Chinese unit for over $775 million to local partners, a move it said will help expand business opportunities in China.
ARM will sell a 51% in ARM Technology (China) Co. to Chinese investors to form a joint venture, in a deal expected to close this month, parent company SoftBank Group Corp. said in a statement. It didn’t name the buyers, which it referred to as “partners” and “financial investors.”
Foreign technology heavyweights, including Microsoft Corp., Cisco Systems Inc., Western Digial Corp. and Qualcomm Inc., have all set up Chinese ventures whose majority stakes are controlled by local partners. This allows them access to the market as Beijing races to groom homegrown technology powerhouses. Having a local company as controlling stakeholder also eases Beijing’s national security concerns involving sensitive technologies.
The Chinese market is “valuable and distinctive from the rest of the world,” said SoftBank in the statement, adding this joint venture will license ARM semiconductor know-how to Chinese companies and help develop its technology in the country locally. ARM’s name isn’t well known, but its technology is used to power most of the world’s smartphones.
SoftBank said it estimates that around 95% of all advanced chips designed in China last year were based on ARM technology. In the fiscal year ending in March, China made up around 20% of ARM’s total revenue, the statement added.
Japanese conglomerate SoftBank acquired ARM, the U.K.’s most valuable technology company, for $32 billion in 2016 in an all-equity deal.
Caixin reported last month that ARM was forming a venture (link in Chinese) with the Hopu-ARM Innovation Fund, backed by a number of investors including China’s Hopu Investment Management Co. Ltd., China Investment Corp., Singapore’s Temasek Holdings and ARM itself. Hopu-ARM manages an $800 million fund.
Contact reporter Jason Tan (firstname.lastname@example.org)
Jun 19 18:46
Jun 19 18:30
Jun 19 17:02
Jun 19 12:02
Jun 19 12:27
Jun 19 11:55
Jun 19 09:27
Jun 19 09:40
Jun 19 03:43
Jun 18 20:16
Jun 18 19:27
Jun 18 16:16
- 1Hong Kong Billionaire to Pay Tuition for Every Undergrad at Mainland University for Four Years
- 2China Launches EV Safety Inspection After Tesla and Nio Fires
- 3 In Depth: The State Wants Out of China’s Biggest Air-Conditioner Maker. Why Does Everyone Else Want In?
- 4Regulators Move to Restructure Troubled Baoshang Bank
- 5China Asks Big State-Owned Banks to Back Top Brokerages
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas