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Hardware & electrical equipment

Qualcomm eager to buy Arm stake in upcoming IPO

Qualcomm wants to create a consortium with its rivals that would maintain Arm's neutrality in the competitive chip market

US chipmaker QUALCOMM, Inc. (NASDAQ:QCOM) is looking to acquire a stake in Arm in the upcoming IPO of the UK semiconductor firm.

"We’re an interested party in investing," Cristiano Amon, Qualcomm’s chief executive, told the Financial Times. "It’s a very important asset and it’s an asset which is going to be essential to the development of our industry."

Amon termed the UK chip designer an asset in the US$500bn semiconductor market.

Japan's SoftBank has opted to list Arm on the New York Stock Exchange after Nvidia's takeover collapsed earlier this year, with the Tokyo-based company looking for a US$60bn valuation for Arm, reported Bloomberg.

In order to maintain Arm's neutrality in the highly competitive semiconductor market, Qualcomm would be interested in purchasing a stake in Arm together with its rivals and create a consortium, Amon told the FT. The San Diego-based company would be willing to purchase Arm outright if the consortium was large enough, he added.

The British government recently announced that it would carry out an inquiry into the UK’s semiconductor industry, which will look into the sector’s strengths and weaknesses

Some UK politicians have called on the government to buy a 'golden share' in Arm to recognise its position as a crucial strategic asset for the country, according to the FT.

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