Arm, a British microchip designer, has announced that it will not pursue a listing on the London Stock Exchange this year.

The company, based in Cambridge, is responsible for designing the technology that powers processors in a range of devices, from smartphones to gaming consoles.

In January, it was reported that Prime Minister Rishi Sunak had reopened discussions with SoftBank, the Japanese investment giant that owns Arm, regarding a potential UK listing.

However, Arm has now decided that a single listing in the US in 2023 is the most appropriate course of action.

Chief executive Rene Haas said in a statement: “After engagement with the British Government and the [Financial Conduct Authority] over several months, SoftBank and Arm have determined that pursuing a US-only listing of Arm in 2023 is the best path forward for the company and its stakeholders.”

Arm, the British microchip designer, has announced that it will not pursue a listing on the London Stock Exchange this year.

The company, which designs the technology behind processors that power devices such as smartphones and game consoles, has instead chosen a sole listing on a US exchange in 2023 as the “best path forward.”

However, Arm has said that it will consider a UK listing “in due course.” This decision has raised concerns that the UK market is not doing enough to attract tech company stock offerings, with US exchanges perceived to offer higher profiles and valuations.

Arm was previously dual-listed on the London Stock Exchange and the Nasdaq for 18 years before being acquired by SoftBank for $32bn (£26.7bn) in 2016.

Arm’s CEO, Simon Haas, stated that the company is increasing its UK presence and headcount, with plans to open a new site in Bristol, and will retain its material intellectual property, headquarters, and operations in the UK.

“Arm is proud of its British heritage, and continues to work with the British Government,” he said. “We will continue to invest and play a significant role in the British tech ecosystem.”

A Government spokesperson said: “The UK is taking forward ambitious reforms to the rules governing its capital markets, building on our continued success as Europe’s leading hub for investment, and the second largest globally.”

They added the UK “continues to attract some of the most innovative and largest companies in the world” and acknowledged Arm’s commitment to its UK presence with more jobs and investment.