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Apple's decision to choose a chip design licensed from ARM for the iPhone instead of using Intel processors was a watershed moment for all three companies.

(AP photo)

British chip designer ARM Holdings confirmed Monday it will sell to a Japanese company, SoftBank Group, for more than $32 billion. The deal, which had been widely reported Sunday night, represents a 43 percent premium over ARM's share price at Friday close.

ARM designs customizable chip technology licensed for nearly all major smartphones and many tablets, including Samsung's mobile devices and Apple's iPhone and iPad. ARM's success in mobile made it a major threat to Intel, which has been largely shut out of the mobile chip market.

Now, ARM is pushing to get into Intel's most profitable business - high-end microprocessors for the servers that run large data centers. ARM designs have had little traction in data centers to date, and Intel dominates that market, but the large companies that operate those facilities have been avidly seeking alternatives.

Additionally, SoftBank said ARM will give it a pathway into an emerging class of technology called the "Internet of Things," which includes computers embedded in clothing, appliances and everyday objects to track their performance or add capabilities. Intel is also pursuing IoT as part of a strategy to diversify the business away from the fading PC market.

SoftBank, a Japanese telecom company, already owns a portion of Chinese technology titan Alibaba and a controlling stake in the American cell phone company Sprint.

SoftBank said it will retain ARM's headquarters in Cambridge, doubling its work force there over the next five years, while expanding the company internationally. The deal became more affordable after Britain voted to leave the European union, dramatically reducing the value of the pound and making companies in the UK more attractive to buyers from overseas.

This article has been updated with confirmation of the deal and additional detail.

-- Mike Rogoway

mrogoway@oregonian.com

503-294-7699

@rogoway