ARM said that it will sell its 51% stake in ARM Technology China to its financial investors and its partners to establish a joint venture company to operate ARM's semiconductor technology business in China.
Two years ago, Softbank acquired British chip design firm ARM for £24.3 billion and signed an agreement to sell the latter’s 25% stake to the Saudi-backed vision fund, and is expected to re-launch ARM.
Softbank Group stated that about 95% of all advanced chips designed in China last year were based on ARM technology, and the Chinese sector contributed 20% of ARM's total sales.
Softbank said that after the completion of the transaction, Arm will continue to obtain a large share of all licensing, patent, software and service revenues from Arm China's authorized production of Arm semiconductor products.
Softbank also stated that it expects to record revenue for the transaction in the quarter ending in June. Details will be announced once it is confirmed.