Foxconn’s Young Liu committed to Karnataka, Telangana projects; SoftBank’s Arm aims to raise $8 bn in US IPO

This and more in today’s ETtech Top 5.

Also in this letter:
■ SoftBank’s Arm aims to raise at least $8 billion in US IPO
■ By the numbers: More women entrepreneurs using Meta apps in India
■ Zoom sacks president Greg Tomb sans ‘cause’

Programming note: The ETtech newsletter team will be taking a short break on March 7-8 on the occasion of Holi and will be back to regular programming on March 9. We wish you and your loved ones a colourful Holi. Stay tuned to ETtech.com for all the news and updates.

Committed to taking Karnataka, Telangana projects forward: Foxconn

Foxconn CEO Young Liu (right) with Telangana chief minister K Chandrasekhar Rao

Taiwanese electronics major Foxconn on Monday said it will be in close contact with Karnataka and Telangana to take its electronic manufacturing projects across the two states forward.

Details: In separate letters to Karnataka chief minister Basavaraj Bommai and Telangana chief minister K Chandrashekar Rao, Foxconn chairman Young Liu said he will “ensure successful grounding of the ‘Project Elephant’ in Bengaluru” while underscoring its commitment to setting up a manufacturing facility in Kongara Kalan in Telangana.

The two letters sought to clear any air of confusion after the company’s statement on Saturday suggested that last week’s agreement was not “definitive” in nature.

(From right to left) Foxconn chairman Young Liu with Karnataka chief minister Basavaraj Bommai, industries secretary S Selvakumar, industries commissioner Gunjan Krishna and industries minister Murugesh Nirani in Bengaluru, last week.

Quote unquote: “I am confident this project will lay a strong foundation for our other multiple plans, spanning mechanical/precision machinery, electric vehicle, IC Design & semiconductor segments to consider your state as a potential investment destination,” Liu said in his letter to Bommai.

In another letter to Rao, he said, “I seek the support of your team in operationalising the Kongara Kalan Park as early as possible. I was indeed inspired by your vision and the efforts towards transformation and development of Telangana.”

SoftBank’s Arm aims to raise at least $8 billion in US IPO

Arm Ltd, the British chip designer owned by Japan’s SoftBank Group Corp, aims to raise at least $8 billion from what is expected to be a blockbuster US stock market launch this year, people familiar with the matter told Reuters.

Details: Arm is expected to confidentially submit paperwork for its initial public offering (IPO) in late April, the sources said. The listing is expected to happen later this year and the exact timing will be determined by market conditions. The valuation range has not yet been finalized but Arm is hoping to be valued at more than $50 billion during its share sale.

Background: The company said last week it would pursue a US-only listing this year, dashing the British government’s hopes that the tech giant would return to the London stock market. SoftBank has been pursuing a listing for Arm since its deal to sell the chip designer to Nvidia Corp for $40 billion collapsed last year because of objections from US and European antitrust regulators.

Boost to IPO market: A successful listing for Arm this year would provide a boost to the IPO market, which has been largely frozen since Russia’s invasion of Ukraine in February 2022 triggered market volatility and a huge sell-off in tech stocks.

TWEET OF THE DAY

Zoom sacks president Greg Tomb without quoting a ‘cause’

Video conferencing platform Zoom has fired president Greg Tomb without any cause just a few weeks after laying off 15% of the total workforce. In a regulatory filing in the US, Zoom said that Tomb’s contract was abruptly terminated “without cause”.

Catch-up quick: Zoom laid off about 1,300 people, comprising 15% of its workforce, last month.

In a blog post, CEO Eric Yuan announced that he will forego 98% of his salary for the coming fiscal year and a full corporate bonus.

The company, which rose to fame during Covid-induced lockdowns, competes with rivals such as Microsoft Corp’s Teams, Cisco’s Webex, and Salesforce’s Slack.

AI push: Amid renewed interest in AI, Zoom has said it will integrate more artificial intelligence into its products.

“The age of AI and large language models has arrived,” said chief executive Yuan during a call with analysts, adding that AI can “truly help” the company. It expects revenues between $4.44 billion and $4.46 billion for fiscal 2024, compared with analysts’ average estimate of $4.6 billion, as per a Reuters report.

TikTok a potential target in upcoming US bill to ban some foreign tech: Senator

Senator Mark Warner has said that two US senators plan to introduce legislation this week aimed at letting the government “ban or prohibit” foreign technology products such as Chinese-owned TikTok.

Trouble grows: Warner said he was concerned that TikTok “can be a propaganda tool” based on the types of videos it sends to users.

Also read | List of countries that have implemented a partial or complete ban on TikTok

The US House Foreign Affairs Committee voted on Wednesday to give President Joe Biden the power to ban TikTok in the most far-reaching US restriction on any social media app.

Pressure intensifies for TikTok: The White House last week gave government agencies 30 days to ensure that TikTok is not on any federal devices and systems. More than 30 US states, Canada, and European Union policy institutions have also banned TikTok from being loaded onto state-owned devices.

India, Pakistan, and Taiwan are among the countries that have banned the Bytedance-owned app.

By the numbers: More women entrepreneurs using Meta apps in India

Meta (formerly Facebook) has said that it has continued to see a strong trend towards women entrepreneurs using its apps in India over the last three years.

Moreover, the tech giant said that women are also playing a critical role in supporting each other by forming communities.

“What is great to see is that the momentum gained during the pandemic continues even post-pandemic. Our commitment remains to unlock growth for India’s small businesses, and enabling women entrepreneurs is a big part of that commitment,” Archana Vohra, Director, Small and Medium Business for Meta in India, said in a statement.

Today’s ETtech Top 5 newsletter was curated by Megha Mishra in Mumbai and Erick Massey in New Delhi. Graphics and illustrations by Rahul Awasthi.