Samsung Electronics on Tuesday denied a media report that it is considering looking for a small stake in SoftBank Group Corp’s chip agency Arm Holdings.

According to tales,  Samsung’s curiosity in looking for a minority stake of between 3% and 5% throughout the British chip designer as a strategy to reduce its royalty price.

According to the company, the report was ‘groundless’.

Arm, the British chip know-how company, licenses its chip designs and know-how to corporations like Qualcomm, Apple and Samsung, which in flip use that know-how of their chips for smartphones and completely different devices.

SoftBank is in the intervening time negotiating phrases with U.S. chipmaker Nvidia Corp after receiving an methodology about takeover curiosity remaining month, tales talked about.

The Japanese conglomerate, which acquired Arm for $32 billion in 2016, is exploring selections along with a full or partial sale or a public offering of the British chip designer.

Earlier, it was reported that Samsung Electronics will halt operations of its remaining laptop manufacturing unit in China, the most recent producer to shift manufacturing from the world’s second-biggest financial system.

Companies are rethinking their manufacturing and supply chains amid rising Chinese labour costs, a U.S.-China commerce battle and the blow from the COVID-19 pandemic.

According to tales, spherical half the 1,700 workers on contract at Samsung Electronics Suzhou Computer will be affected, excluding these involved in evaluation and progress.

The manufacturing unit shipped $4.Three billion worth of merchandise out of China in 2012, a decide that had sunk to $1 billion by 2018, tales talked about.

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