Sun Zhengyi considers ARM to be relisted within 5 years

By Olimex

According to Bloomberg News, Sun Zheng said that he would consider re-listing the British chip design company ARM, which was acquired by Softbank within five years, but has not yet decided on the final listing.

In 2016, Softbank acquired ARM for £24.3 billion, the largest M&A deal by Softbank since the acquisition of US telecom operator Sprint, and the second-largest acquisition in semiconductor history.

For the purpose of acquiring ARM, Sun Zhengyi said: "I think the next era should be the era of the Internet of Things, not only smartphones, cars and home appliances, but all items will be connected through the Internet. ARM's design capabilities have a pivotal impact in the Internet of Things era."

ARM's business model is IP licensing, which means that one-time technical licensing fees and royalties are charged through intellectual property licensing.

In the first year after the acquisition, in 2017, ARM royalty (Royalty) revenue of 1.1 billion US dollars, 12% increase, chip volume increased by 20%, the market share of embedded chips increased; ARM-based on-chip integrated system (SoC) In 2017, the volume was 21.3 billion (17.7 billion in 2016), accounting for 39% of the total market.

After the acquisition of ARM, Softbank's performance has been rising. In the recently announced 2018 financial report, Softbank exceeded its expectations for a full-year gain. Sales increased by 5% year-on-year to 3.7463 trillion yen (about 232 billion yuan), and operating profit increased by 13% year-on-year to reach 719.5 billion yen (about 44.6 billion yuan), both hitting record highs. The increase in the cumulative number of smartphone subscriptions was a major factor in performance growth, reaching 22.08 million, an increase of 10% year-on-year. In addition, Softbank said that it will combine AI, robotics and IoT technologies with 5G to develop a business-oriented solution business in the future, targeting public and local governments.