Samsung and other big tech firms, such as Apple, AMD, NVIDIA, Intel, and Alphabet, are all set to invest in the British chip design firm ARM's IPO. The chip design firm is valued at $50-$55 billion. Notably, ARM is owned by SoftBank, which has a 25% stake in the company. According to Reuters, talks are going on among other investors to go on board for ARM's IPO.
As of now, there isn't any news regarding individual company investments. However, the report states that NVIDIA, Apple, Samsung, and others have agreed to invest between $25 million and $100 million in ARM's IPO as long-term investors. Reportedly, ARM and SoftBank have kept aside 10% of the shares that will be sold in the IPO.
Amazon was also reported to be one of the investors in ARM's IPO. But for some undisclosed reasons, Amazon has pulled out of the IPO. Each company, especially Samsung and Apple, has something to gain by investing in ARM's IPO since it is the company that offers them basic chip architecture and designs. Samsung wants to improve its commercial relationship with ARM and ensure the chip giant does not pick sides in the chip industry.
As pointed out in the report, while the investment won't give any of the companies a seat on ARM's board, it will strengthen ties and make it harder for future acquisitions of ARM by other companies. Interested companies, including Alphabet, AMD, Intel, Apple, Samsung, and Cadence, declined to comment on this report.