# Episode 31: The Arm F1 and Pending IPO

- Show: [The Circuit](https://hardwarepodcasts.com/podcast/the-circuit)
- Published: 2023-08-28
- Length: 42m
- Episode: 33
- Page: https://hardwarepodcasts.com/podcast/the-circuit/2023-08-28-episode-31-the-arm-f1-and-pending-ipo
- Listen: https://share.transistor.fm/s/07ee9e74

## Summary

Ben Bajarin and Jay Goldberg analyze Arm's F-1 IPO filing, highlighting SoftBank's aggressive exit strategy and the company's heavy reliance on mobile revenue from just five customers, including a litigious Qualcomm. They discuss the low average royalty of 11 cents per chip, the complex Arm China joint venture, and the potential for business model shifts toward compute subsystems. The hosts also assess the IPO's impact on future semiconductor listings, particularly Ampere, noting that a successful Arm launch is critical for market confidence in the sector.

## Chapters

- [0:13](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-28-episode-31-the-arm-f1-and-pending-ipo#t=13) Introduction: Arm F-1 Filing and Initial Observations
- [2:15](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-28-episode-31-the-arm-f1-and-pending-ipo#t=135) Revenue Concentration and Customer Risks
- [6:37](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-28-episode-31-the-arm-f1-and-pending-ipo#t=397) Arm China Joint Venture and Data Center Revenue
- [14:54](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-28-episode-31-the-arm-f1-and-pending-ipo#t=894) SoftBank Governance and Financial Engineering
- [21:35](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-28-episode-31-the-arm-f1-and-pending-ipo#t=1295) IPO Valuation and SoftBank's Exit Strategy
- [25:10](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-28-episode-31-the-arm-f1-and-pending-ipo#t=1510) Royalty Rates and Compute Subsystems
- [30:34](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-28-episode-31-the-arm-f1-and-pending-ipo#t=1834) Pricing Model Flaws and Qualcomm Lawsuit
- [36:33](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-28-episode-31-the-arm-f1-and-pending-ipo#t=2193) Impact on Future Semiconductor IPOs like Ampere

## Topics

- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Intellectual property](https://hardwarepodcasts.com/topic/intellectual-property)
- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)

## Most relevant to

early-stage companies

## Mentioned

- Arm (company)
- SoftBank (company)
- Qualcomm (company)
- Apple (company)
- MediaTek (company)
- Amazon (company)
- Graviton (product)
- Ampere (company)
- NVIDIA (company)
- Cadence (company)
- Synopsys (company)

## Related episodes from other shows

- [Nvidia & Arm: The East Coast Perspective](https://hardwarepodcasts.com/podcast/ee-times-current/2021-04-23-nvidia-arm-the-east-coast-perspective) (EE Times Current)
- [Fear & Loathing on the M&A Trail](https://hardwarepodcasts.com/podcast/ee-times-current/2021-02-26-fear-loathing-on-the-m-a-trail) (EE Times Current)
- [Seismology 1: Nvidia & Arm | Seismology 2: US IC Manufacturing on the Rebound](https://hardwarepodcasts.com/podcast/ee-times-current/2020-08-07-seismology-1-nvidia-arm-seismology-2-us-ic-manufacturing-on-the-rebound) (EE Times Current)
- [Tektronix, ChipReport.tv, & the Signal Path - Temperative Tegmen Temperature](https://hardwarepodcasts.com/podcast/the-amp-hour/2012-07-30-tektronix-chipreport-tv-the-signal-path-temperative-tegmen-temperature) (The Amp Hour)
- [CEO Interview: Mike Henry of Mythic | The Biggest Chip Deal Ever | Do Androids Dream of Electric Smartphones?](https://hardwarepodcasts.com/podcast/ee-times-current/2020-09-18-ceo-interview-mike-henry-of-mythic-the-biggest-chip-deal-ever-do-androids-dream) (EE Times Current)

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