Son’s Softbank Group Chairman visited Korea on the 1st. While Chairman Son’s chairman will meet with samsung Electronics Vice Chairman Lee Jae-young, it is noteworthy that the merger and acquisition (M & A) of Samsung Electronics and British semiconductor design assets (IP) companies will be successful.
According to the business community on the 1st, Son Jung’s chairman arrived at Gimp International Airport around 3 pm today. Son visited Korea for three years since July 2019. Son is expected to meet with Lee Jae-young and propose to acquire ARM while staying in Korea for about a week.
Earlier, Lee said, I did not meet ARM at the reporters’ questions asking if they met with ARM management at Gimp Airport, which returned to Korea on the 21st of last month. I have said.
Son appears to see Samsung Electronics as a strong candidate for ARM acquisition.
In general, companies are secretly proceeding and not informing the outside until they enter into an acquisition contract. Nevertheless, the vice-chairman, the head of Samsung Electronics and the chief decision maker, mentioned the acquisition of ARM to the reporters, the industry interprets that Samsung Electronics is highly willing to acquire ARM.
ARM is a company that has core semiconductor design technologies such as computer central processing devices (CPU) and smartphone application processors (APs). In particular, in the global smartphone market, ARM has a 90% share of the semiconductor market.
ARM has a 75% stake in Japan Softbank, and the remaining 25% stake is a subsidiary, Vision Fund. At present, ARM ransom is estimated to be about 70 trillion won and up to 100 trillion won. Samsung’s cash is about 125 trillion won, which is enough to acquire ARM.
Some expect Samsung Electronics to form a consortium rather than the acquisition of ARM to promote equity investment. This is because the regulatory authorities may fail.
Earlier, NVIDIA signed an arm acquisition contract worth $40 billion in September 2020, but the acquisition was not approved by major regulators such as the United States and the United Kingdom due to antitrust regulations.
In addition to Samsung Electronics, Intel, SK Unix, and Qualcomm also announced their intention to acquire ARM. As a result, these companies are weighted to form a consortium to promote the joint acquisition of ARM.