Arm transfers software business to SoftBank and will focus on chip business

According to Reuters, British Arm said on Tuesday that it plans to transfer two software businesses to its Japanese parent SoftBank Group and shift its business strategy to focus on developing its core chip business.

The core chip business includes units under the Arm Internet of Things Services Group, which help chip buyers manage data generated when all kinds of devices connect to the Internet, Arm said in a statement, adding that it hopes to complete the transfer by September.

Telecom operator SoftBank acquired Arm for $32 billion in 2016, the largest acquisition ever. It is understood that SoftBank acquired Arm in part to expand its business into the Internet of Things.

Arm predicts that by 2035, the company will connect 1 trillion devices, many of which will contain chips containing its intellectual property, from which it generates licensing and patent royalties.

Arm dominates the global market for designing chips for smartphones and is moving into the server and laptop markets, with its silicon chip designs favored for their energy efficiency.

It is worth noting that there have been recent reports that SoftBank Group is considering relisting its microchip design company Arm on the Nasdaq stock exchange in the United States.