TechDogs-"Will Amazon Help Strengthen Arm Where Others Have Failed?"

Manufacturing Technology

Will Amazon Help Strengthen Arm Where Others Have Failed?

By TD NewsDesk

TD NewsDesk

Updated on Thu, Aug 10, 2023

Overall Rating
Chips! #HungryYet?

While we’d love to get a tasty snack right about now, we’re actually talking about microchips – otherwise known as semiconductors.

These small integrated circuits (ICs) power machines and devices of great sizes, such as trucks, cars, aircraft and more. Of course, they’re used in smaller items too, like your smartphone, smartwatch or essentially any electronic device.

Well, talking of semiconductor chips, one of the most popular names in the industry is about to go public and is on the lookout for investments from tech conglomerates. However, most recently reports say Amazon is the front-runner in the race!

What’s the deal Amazon is trying to make? Let’s explore!
 

What Is Arm – The Company In Question?

 
  • Arm Ltd., which was founded in 1990, was initially called Advanced RISC Machines Ltd. The company was a joint venture between Acorn Computers, Apple and VLSI Technology. Although the acronym is older than the founding date when it originally stood for "Acorn RISC Machine". (Side note: RISC stands for Reduced Instruction Set Computer)

  • In 2016, SoftBank Group Corp., a Japanese multinational investment holding company, took over as the owner of Arm.

  • The company is engaged in providing software development tools and chip architecture, meaning that it designs microchips as well as manufactures them.

  • Its flagship product includes its design of ARM processors (CPUs), which, according to its website have been used in 250+ billion products and “about 70% of the world's population use Arm-based technology across all markets.”

  • The big news surrounding the company is that it plans to list on the Nasdaq in September 2023, where it will look to raise $8 billion to $10 billion through its IPO (Initial Public Offering), according to reports.

  • According to reports, Arm will officially apply to the US Securities and Exchange Commission (SEC) for the listing sometime in August.

   

What’s The Proposed Deal With Amazon?

 
  • Reportedly, Arm is in talks with Amazon to become a cornerstone investor before the company goes public. This could be in conjunction with other technology companies.

  • Despite Amazon producing its own processing chips (called Graviton) by using Arm’s design, the company’s interest in the IPO shows how much of a dominating force Arm is in the industry.

  • At the time of writing, both Arm and Amazon declined to comment.

   

Who Else Is Interested In The IPO?

 
  • As per reports, Arm has held pre-IPO investment talks with around 10 other technology companies. These companies include Intel, Alphabet, Nvidia and more.

  • Furthermore, investing companies will not receive any control powers or board seats.

  • Reports state that in June, Arm was in talks with Nvidia to come on board as an anchor investor. This follows lengthy acquisition talks by Nvidia of Arm that fell apart because of objections from antitrust regulators. Apple, Samsung and Intel were also part of the anchor investment conversations.

  • Comments weren’t provided by Apple, Intel, Samsung, Nvidia or SoftBank.


While the cornerstone and anchor investor talks may go on for longer, reports say that Apple, Samsung, Nvidia and Intel plan to invest at the company’s IPO.

Do you think Amazon’s partnership with SoftBank’s Arm would pose a challenge for other companies in the semiconductor industry? Let us know in the comments below!

First published on Thu, Aug 10, 2023

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Tags:

Digital FactoryManufacturing Technology Microchip Semiconductors Arm SoftBank Amazon Apple Alphabet Intel Nvidia Samsung

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