- The chip design giant is transferring two IoT groups to SoftBank.
- It believes itâ€™s better off focusing on core chip designs for phones and computers.
- The handover should be finished by September 2020.
Arm may have painted a bright future for Internet of Things devices just months ago, but it wonâ€™t have much involvement in that future.
The chip designer has proposed transferring two of its IoT divisions, including the key platform business, to new entities run by Japanese tech giant SoftBank. The move would let Arm â€œdeepen its focusâ€� on core chip technologies like its Cortex designs, according to the company, putting it in a â€œstronger position to innovate.â€�
For SoftBank, meanwhile, the arrangement would be a chance to make the most out of the â€œsymbiotic growth of data and compute.â€� Arm pointed to SoftBankâ€™s experience with early, quick-to-grow startups as proof.
The deal could wrap by the end of September 2020 if it clears the usual hurdles from company boards and regulators.
Itâ€™s not shocking that Arm would go this route. While the number of connected devices is continuing to grow, Arm-based systems-on-a-chip are increasingly finding their way into computers ranging from supercomputers to Appleâ€™s next-generation Macs. This is Armâ€™s opportunity to compete more directly with heavy-duty processors like those from AMD and Intel, and a narrower focus might help.