IPO of chip firm Arm turns into tug of war for influence among tech giants
- Tech giants including Apple, Amazon, Intel, Nvidia, Alphabet, Microsoft, Samsung and TSMC have held talks about taking a piece of the Arm IPO
- Companies are seeking to expand their commercial relationship with the chip design firm to ensure rivals do not get an edge in a critical resource
A scramble among Arm Holdings’ clients, comprising the world’s biggest technology companies, to snap up shares in its initial public offering (IPO) is testing the semiconductor designer’s adherence to not picking sides in the chip industry.
These companies’ interest is fuelled by a desire to expand their commercial relationship with Arm, and make sure that their rivals do not gain an edge, according to people familiar with the discussions.
This is because Arm’s customers view its semiconductor designs as an indispensable resource. They are used by more than 260 technology companies to make over 30 billion chips annually, powering 99 per cent of the world’s smartphones and everything from the tiniest of sensors to the most powerful supercomputers.
While an IPO investment would not come with a seat on Arm’s board or ability to dictate strategy, it could strengthen ties with each participating company and make it harder for a competitor to acquire Arm later, according to the sources.
