Foxconn and TSMC would be very interested in the sale of ARM. According to the publication Nikkei Asian Review, the two Asian companies could in turn be candidates for the acquisition of British company which has been owned by SoftBank since 2016.
A lifeline for Foxconn
Foxconn works with and for a plethora of brands in the high tech industry, including Apple since it is the workers of the company who assemble the iPhones, for example. If it gets its hands on ARM, this will allow it to diversify its activities, to work even more closely with some of its usual partners and, above all, to get back into the green because the sale and renewal of licenses operated by Apple, Samsung, Qualcomm or Nvidia would allow him to bring in fresh money in quantity.
The Chinese company, although omnipresent in the world of assembly of high-tech devices, has been losing money for some time. The latest figures published for the year 2019 are not good and the health crisis must not have improved Foxconn’s business. The next financial results are likely to be of the same barrel as the preceding ones.
A great opportunity for TSMC
TSMC, him, serious processors computing, 3D chips but also SoC (System on Chip) for smartphones and this, for … almost all players in the first and second level market. Acquiring ARM would provide a very good complement to its areas of expertise and know-how.
This would also make it possible to create synergies with partners that the company already has and to strengthen ties with others. Without forgetting that the sale of an ARM license would bring it significant gains that it could then reinvest in research and development to refine its engraving processes, open new factories and welcome new customers.
Source: Nikkei Asian Review