（责任编辑：朱晓航）

SoftBank Group announced on the 8th that it has abandoned the sale of its British chip design company Arms to American chip giant Nvidia. Experts say SoftBank's operating earnings and transformation strategy will be challenged as authorities around the world tighten antitrust oversight of technology companies.

Sun Zhengyi, chairman of SoftBank Group, said at a press conference on the 8th that under the circumstance that anti-monopoly agencies in various countries strongly block the sale of Arm, SoftBank will consider promoting Arm's sales during the current fiscal year until the end of March 2023. Initial public offering (IPO). He also said that Arm has returned to a growth trajectory and is currently in good financial shape.

SoftBank said Arm is on track to generate $2.5 billion in revenue for the fiscal year ending in March, up from $1.98 billion a year earlier, after a bumpy ride a few years ago. Arm’s operating profit has more than doubled in the past two years and is expected to be $900 million this fiscal year, according to a calculation used by SoftBank.

SoftBank Group reached an agreement with Nvidia on the sale of Arm in September 2020, but due to strong opposition from multinational antitrust agencies, the transaction has not progressed.

Son said he was surprised that not only did U.S. regulators sued to block the deal in December, but other big tech companies that relied on Arm's chip designs also opposed the deal. Because Arm is one of the most important and essential companies that most companies in the IT industry or Silicon Valley rely on directly or indirectly.

SoftBank bought Arm for $32 billion in 2016. Son said the cash-plus Nvidia stock deal could have been worth $80 billion because of Nvidia's rise.

Experts said that most mobile chips in the world currently use the Arm architecture. If Nvidia successfully acquires Arm, the combination of the two may form a technological monopoly, which will affect many chip companies using Arm's architecture.

"Nihon Keizai Shimbun" reported on the 9th that the failure of the transaction reflects the confusion in SoftBank Group's business strategy. SoftBank Group’s October-December 2021 financial report shows that the value of investment target companies has fallen, and ultimately profits have fallen sharply. If global interest rates enter a situation of rising, the increase in financing costs will cast a shadow on the financial strategy.

A setback in the sale of Arm will have an impact on SoftBank Group's growth strategy. SoftBank Group is accelerating the use of its own funds for investment, and the sale of Arm is a high priority measure. If the cash obtained from the sale of Arm can be invested in emerging companies, with the help of NVIDIA and the Arm Alliance, a major force in cutting-edge semiconductors will be born. This is SoftBank Group's strategy to promote the "AI revolution", but it will be forced to adjust in the future.

SoftBank Group's interest-bearing liabilities alone amount to about 14 trillion yen. More than 40% of them are loans secured by shares held. The interest payment burden for the year reached about 240 billion yen. The global interest rate hike will lead to higher interest rates and lower stock prices, which will hit SoftBank Group in terms of the decline in the value of its holdings and the increase in financing costs. Since the beginning of 2022, affected by the decline in stock prices, Sun Zhengyi revealed that "the amount and quantity of Vision Fund investments may be lower than last year."

(Editor in charge: Zhu Xiaohang)