Arm Intends to Strengthen Focus on Core Semiconductor IP Business Growth
Today, Arm announced proposed strategic organizational changes to strengthen its focus on growth and profitability. The company is proposing to transfer its two IoT Services Group (ISG) businesses, IoT Platform and Treasure Data, to new entities that would be owned and operated by SoftBank Group Corp. and its affiliates. Upon completion of the proposed transfer, Arm will deepen its focus on its core semiconductor IP business and expects to continue collaborating with the new ISG businesses.
“Arm believes there are great opportunities in the symbiotic growth of data and compute,” said Simon Segars, chief executive officer, Arm. “SoftBank’s experience in managing fast-growing, early-stage businesses would enable ISG to maximize its value in capturing the data opportunity. Arm would be in a stronger position to innovate in our core IP roadmap and provide our partners with greater support to capture the expanding opportunities for compute solutions across a range of markets.”
Arm continues to be committed to enabling a world of billions of intelligent connected devices wherever computing happens. To-date, Arm partners have shipped more than 165 billion Arm-based chips, and an average of more than 22 billion per year over the past three years as demand for computing accelerates with the proliferation of IoT, 5G and AI.
The transfer of the ISG businesses is subject to further board review, customary closing conditions, consultation with local staff representatives (where applicable) and, if approved, is expected to be finalized by the end of September 2020.
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