Samsung Electronics on Tuesday denied a media report that it is considering buying a small stake in SoftBank Group Corp’s chip company Arm Holdings.
According to reports, Samsung’s interest in buying a minority stake of between 3% and 5% in the British chip designer as a way to reduce its royalty payment.
According to the company, the report was ‘groundless’.
Arm, the British chip technology firm, licenses its chip designs and technology to companies like Qualcomm, Apple and Samsung, which in turn use that technology in their chips for smartphones and other devices.
SoftBank is currently negotiating terms with U.S. chipmaker Nvidia Corp after receiving an approach about takeover interest last month, reports said.
The Japanese conglomerate, which acquired Arm for $32 billion in 2016, is exploring options including a full or partial sale or a public offering of the British chip designer.