Samsung's CEO will meet with Softbank to discuss the 'Strategic Alliance' with arm, with all of the details

Samsung's CEO will meet with Softbank to discuss the 'Strategic Alliance' with arm, with all of the  ...

Masayoshi Son, the founder of SoftBank Group and CEO, stated on Thursday that he intends to meet with Samsung Electronics to discuss a possible "strategic agreement" between the South Korean IT giant and chip designer Arm.

The billionaire will make his first trip to Seoul in three years. "I''d like to talk with Samsung about establishing a strategic partnership with Arm," Son said in a statement.

According to newswire News1, Son "may make a proposal" on a visit anticipated next month. Samsung has declined to comment on the report.

Arm, a technology that powers Apple''s iPhone and nearly all other smartphones, was purchased in 2016 for $32 billion (roughly Rs. 2,58,663 crore). A subsequent proposal to sell Arm to Nvidia sparked opposition and slammed regulatory obstacles, prompting SoftBank to establish plans for a US listing of the Cambridge-based firm.

The trip comes amid concerns about the possibility of the formation of a manufacturing cooperative to invest in Arm and ensure its neutrality.

"There must be someone in the middle working to assemble several companies into a consortium," said Lee Min-hee, an analyst at BNK Investment & Securities.

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"A possibility is that firms interested in owning a portion of Arm can pay less for a pre-IPO placement, according to him.

SoftBank, a technology business, has had a major loss at its Vision Fund investment division and sold its stake in Alibaba Group Holding to raise money.

Efforts to list the chip designer are jeopardized, as deals with manufacturers are falling as a result of rising interest rates and Russia''s invasion of Ukraine. The Philadelphia SE Semiconductor Index is down by a third for the previous year.

Samsung may be able to secure an alliance with Arm as the world''s leading provider of memory chips invests heavily in trying to catch up with Taiwan Semiconductor Manufacturing Co in logic chips.

The South Korean nuclear plant is still being hampered by technical limitations in original technology for non-memory chips, such as application processor architecture, which Arm is interested in.

Intel is investigating other possible Arm suitors, including the company''s Chief Executive Pat Gelsinger in February, who expressed interest in joining a group to purchase the chip designer.

According to Yonhap news agency, Samsung competitor SK Hynix expressed interest in Arm. In March, Vice Chairman Park Jung-ho stated that the manufacturer was contemplating establishing a consortium to acquire Arm. The company at the time said the comment did not refer to a specific strategy.

Qualcomm Inc, which has been cited as a potential investor, is being sued by Arm, which claims it of violating license agreements and trademark infringement.

According to a client, the discord might cast a shadow over an Arm listing.

"Arm is unlikely to require all its customers on the inside to get a high valuation," said the president.

Thomson Reuters in 2022