Tech News Summary:
- Arm’s parent company, SoftBank, was unable to acquire the semiconductor design firm Nvidia. As a result, Arm may be considering an IPO as a backup plan.
- Arm wants to change its licensing model by charging device makers a percentage of sales of devices that use its designs, as opposed to charging chip makers like Qualcomm and MediaTek.
- Arm’s new licensing model has been met with reluctance from customers, including Qualcomm, MediaTek, and several Chinese smartphone companies. The impact of their response on the consumer experience remains to be seen.
As Arm Holdings prepares for its upcoming initial public offering (IPO), the company is advising smartphone manufacturers that they either have to put up with its terms or shut up. Arm, the UK-based chip designer whose technology powers over 95% of the world’s smartphones, has been raising money for its IPO and is pushing for changes in its business model that would give it greater control over its technology.
According to reports, Arm has been seeking to persuade smartphone manufacturers to pay higher licensing fees and give up more control over their designs in exchange for access to its latest chip designs. The company has also been trying to limit the ability of manufacturers to switch to competing chip designs.
Arm’s actions have been met with criticism from some smartphone makers, who argue that the company’s proposals would give it too much control over the industry. Some have also expressed concern that the changes would increase costs for consumers and stifle innovation.
Despite the backlash, Arm has remained steadfast in its push for change. In a recent statement, the company said that it was “firmly committed” to its plans and that it believed the changes were necessary to ensure the long-term success of its business.
The IPO, which is expected to take place later this year, could bring in billions of dollars for the company and would be one of the largest listings in the tech sector in recent years. Arm is currently owned by Japanese conglomerate SoftBank, which acquired the company for $32bn in 2016.
Despite concerns from some quarters, many industry experts believe that Arm’s IPO will be a success. The company’s technology is viewed as critical to the future of the smartphone industry, and its dominance in the space makes it an attractive investment opportunity.