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LONDON—Arm Ltd., the British chip designer that
SoftBank Group Corp.
tried unsuccessfully to sell to
Nvidia Corp.
, intends to list its shares in New York, a move that comes amid a race between the U.S., Europe and China to build out their semiconductor ecosystems.
SoftBank last year abandoned plans to sell Arm outright amid growing global regulatory centered on Arm’s dominance in designing the chip technology that powers much of the world’s mobile devices. SoftBank initially agreed to a $40 billion price tag, but SoftBank Chief Executive
Masayoshi Son
had at one point valued the cash-and-stock deal closer to $80 billion after a sharp rise in Nvidia shares.
Mr. Son has long signaled a public offering as a backup plan, and has recently been talking up Arm in an initial public offering road-show-like fashion. However, the company hadn’t announced a venue.
SoftBank had been leaning toward listing Arm in New York, home to other big tech giants. The U.K. government and finance officials had tried to persuade SoftBank to list Arm at home as well, in a dual listing with New York, according to people familiar with the matter.
Eschewing London represents a blow for the financial capital, with other big U.K. companies recently seeking American listings.
Arm’s choice of New York over London is “a significant blow to the U.K. tech sector,” said Russ Shaw, founder of Tech London Advocates, an industry group. “It’s disappointing news for the
and the heritage and future of the U.K. semiconductor industry.”
Arm designs and licenses technology found in chips that power many of the world’s mobile devices and has emerged as a linchpin in the global chip ecosystem. Arm-based chips have long dominated mobile phones, but more recent Arm designs are increasingly finding their way into PCs, pushing into a market long dominated by Intel Inc.
A U.S. listing is “the best path forward for the company and its stakeholders,” Arm Chief Executive
Rene Haas
said. He said the company had engaged with the British government and the country’s stock market regulator over the decision over several months.
Mr. Haas said Arm plans to keep its headquarters in the U.K., where it will boost investment through a new site in Bristol and higher head count. Arm also will continue to house its material intellectual property in the U.K.
Mr. Haas said Arm will also consider a subsequent secondary listing in the U.K.
“We will continue to invest and play a significant role in the British tech ecosystem,” he said.
—Stu Woo contributed to this article.
Write to Ben Dummett at ben.dummett@wsj.com
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