Arm, which is owned by Japan’s SoftBank Group, released a record earnings report for 2021 yesterday, and its CEO Rene Haas told Reuters the business is very promising. SoftBank has concrete plans to list the company’s shares on the stock exchange.
SoftBank is now planning to take the company public. Previously, bureaucratic hurdles from British regulatory authorities prevented the sale to US chip manufacturer NVIDIA.
Last year, the company had total revenue of about $2.7 billion, up 35% year over year. Of that, royalties (excluding royalties) rose 61% to $1.13 billion and royalties from sales of Arm-based chips rose 20% to $1.54 billion.
According to the ARM boss, 29.2 billion chips using ARM technologies were shipped last year, 8 billion of them in the fourth quarter of last year. The company’s director said that the growth in developments in the field of automotive technology paid off three to four years ago, and revenues from this segment more than doubled last year thanks to electrification and growth in computing power of on-board systems in cars. The company boss noted that performance could be even better if chipmakers could arrange bulk shipments.
Haas declined to predict Arm’s potential value in the stock market. It is known that NVIDIA offered $40 billion for the entire company in September, and SoftBank itself once bought it for $32 billion, the portal reports CNBCCiting SoftBank’s management, the company’s Japanese owner wants to retain its majority stake after Arm’s IPO, so there’s no question of losing control of the high-demand business.
Before that, a scandal broke out at the company – its Chinese branch declared itself de facto independent, but now control appears to be gradually being restored. At the same time, the Chinese subsidiary accounts for 20% of Arm’s total sales, according to Haas.