Arm wants to make internet-of-things divisions independent under its own management

British chip designer Arm is pursuing his plans to spin-off two internet of things divisions. However, the spin-offs will not be transferred to the Japanese Softbank, but will operate under its own management.

Arm has concluded that the spin-off of the two divisions under the Arm umbrella offers the same benefits as moving to Softbank, but with less impact on the company. Arm announced this on Tuesday, according to the Japanese business newspaper Nikkei.

This involves the privatization of the IoT Platform and Treasure Data business units, two divisions of Arm’s IoT Services Group. The relevant business units were loss-making in 2019. Poor is struggling to generate more income from the internet of things, partly because chips are less lucrative for this than smartphone chips.

The company recently announced that it will divest IoT Platform and Treasure Data as parts to Softbank to focus on its core chip design activities. Arm itself is owned by Softbank, but it announced in mid-August that it is considering a sale or an early go public for Arm. Rumor has it that Nvidia is negotiating to acquire Arm.