Chipset manufacturer, Arm, has just revealed that the company plans to spin off two of its IoT businesses. A few hours ago, the company made an announcement stating that it will transfer two divisions to SoftBank Group. SoftBank Group was acquired by Arm back in 2016.
The company revealed that it took this action so as to place more focus in its core business – its semiconductor business. Arm is popular in the tech space as a chipset designers and it has produced numerous chipsets that have been used by many popular brands. The transfer of these two divisions is still awaiting additional review from the company’s board. The company, however, expects the transfer to be complete by the end of September.
If this move is complete, it means Arm will no longer be in the IoT Platform and Treasure Data businesses. The company, however, mentioned that it will keep cooperating with the ISG (IoT Services Group) businesses. This means that the company will retain its business on the compute IP portion of the IoT. The data software and services part, however, will be maintained by the two divisions under SoftBank accordingly.
A statement by Simon Segars, CEO of ARM reads, “Arm believes there are great opportunities in the symbiotic growth of data and compute. 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 computing solutions across a range of markets.”
