Order the brand new: Galaxy S23 FE, Galaxy Buds FE or Galaxy SmartTag 2023! Smartphone of the year Galaxy S23 Ultra!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

Report: Samsung has no intentions of buying chip designer Arm

General
By 

Last updated: July 22nd, 2020 at 19:32 UTC+02:00

Semiconductor design company Arm is up for sale but contrary to reports from various industry watchers, Samsung has no intentions of becoming its owner, according to a report citing Objective Analysis analyst Jim Handy. Arm Ltd. is a SoftBank subsidiary and it's the largest and most influential chip designer in the world.

It would make sense at first glance for Samsung to be buying the company given its ambitions in the semiconductor segment. However, analyst Jim Handy claims that it's very unlikely for Arm to become a Samsung subsidiary because the merger and acquisition deal would cost the Korean tech giant more than $40 billion.

In addition, there's a key difference in philosophy between Samsung's way of conducting its semiconductor business and Arm's. The latter designs chips and microarchitectures but it's a fabless company. It doesn't manufacture chipsets but it generates its revenues from licencing intellectual properties (IPs) to other chipset manufacturers including Samsung.

In contrast, Samsung is using its IPs for in-house purposes – such as designing its own Mongoose (M) CPU cores – and these designs have not been offered under license to other chipmakers. Therefore, the acquisition of Arm would not only go against the company's usual business practices in the semiconductor segment, but the deal itself would cost Samsung a literal fortune. With that in mind, analyst Jim Handy believes that the Korean tech giant has no plans to acquire an IP licensing business like Arm.

BusinessGeneral Samsung Semiconductor

You might also like

Samsung reports low profits for Q3 2023 as semiconductor chip losses narrow

Samsung reports low profits for Q3 2023 as semiconductor chip losses narrow

Samsung has been going through tough times due to the downturn of the semiconductor chip segment, leading to huge losses for the company. However, it looks like the company is recovering from that downturn and narrowing losses in its semiconductor chip business. Samsung has reported earnings guidance for Q3 2023, revealing better-than-expected results. Its profits […]

  • By Asif Iqbal Shaik
  • 6 days ago
Samsung may post a nearly 80% operating profit loss in Q3

Samsung may post a nearly 80% operating profit loss in Q3

In anticipation of Samsung Electronics publishing its Q3 earnings guidance later this week, market watchers expect the company to post an operating profit loss of nearly 80% on-year. Samsung's biggest loss is attributed to its semiconductor business, which continues to experience difficulties in the current market climate. Analysts polled by the London Stock Exchange Group […]

  • By Mihai Matei
  • 7 days ago
Samsung won’t need prior approval from the US to upgrade chip factories in China

Samsung won’t need prior approval from the US to upgrade chip factories in China

The US government has now allowed South Korean semiconductor chip firms, including Samsung and SK Hynix, to upgrade their chip factories in China using equipment and technologies developed in the US. Now, Samsung won't need to get prior approvals from the US government, which was the case earlier. Samsung can upgrade chip manufacturing equipment at […]

  • By Asif Iqbal Shaik
  • 1 week ago
US may lift import restrictions on chip equipment to Samsung’s China factory

US may lift import restrictions on chip equipment to Samsung’s China factory

Due to the ongoing geopolitical tensions between China and the US, the US government placed restrictions on the supply of US-made chip technologies and equipment to Chinese firms. Since Samsung has semiconductor chip factories in China, the company faced issues with the supply chain, affecting its business. But the company may get some good news […]

  • By Asif Iqbal Shaik
  • 3 weeks ago
Samsung rival Micron lays foundation of semiconductor plant in India

Samsung rival Micron lays foundation of semiconductor plant in India

Samsung's rival chipmaker Micron has embarked on its semiconductor journey in India as it laid the foundation of a new semiconductor plant in the country. Micron Technology has invested $2.75 billion in chip assembly and test facilities in Sanand, Gujarat. Notably, Indian conglomerate Tata is helping Micron Technology construct the complex. Micron Technology laid the […]

  • By Sagar Naresh
  • 3 weeks ago
Samsung unveils world’s first LPCAMM RAM for PCs and laptops

Samsung unveils world’s first LPCAMM RAM for PCs and laptops

Samsung, the world leader in memory chips, has announced a brand new type of DRAM form factor. The South Korean firm is the world's first to announce LPCAMM (Low Power Compression Attached Memory Module) form factor for DRAM chips, and they are made for future laptops and PCs. These DRAM modules offer faster performance in […]

  • By Asif Iqbal Shaik
  • 3 weeks ago