Has the MIPS acquisition not borne fruits then?
Ha, well no that is another interesting story. But way less valuable than Arm.
Arm China Has Gone Rogue
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Re: Arm China Has Gone Rogue
#12This is the standard Chinese operating model, as I understand it. Accept foreign subsidiary investment on condition of 51% Chinese ownership, transfer the technology, then turn around and compete with the parent. It was a similar story with maglev trains.
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Re: Arm China Has Gone Rogue
#13This is the standard Chinese operating model, as I understand it. Accept foreign subsidiary investment on condition of 51% Chinese ownership, transfer the technology, then turn around and compete with the parent. It was a similar story with maglev trains.
Interesting that it's not the 51% (and I think some of the 51% may be held by non Chinese investors) that has been key but rather Allen Wu having the seal - so even without control of the board he's still been able to get control of the company.
Re: Arm China Has Gone Rogue
#14This is the standard Chinese operating model, as I understand it. Accept foreign subsidiary investment on condition of 51% Chinese ownership, transfer the technology, then turn around and compete with the parent. It was a similar story with maglev trains.
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Softbank sold 51%
> Arm Holdings, the SoftBank subsidiary sold a 51% stake of the company to a consortium of Chinese investors for paltry $775M.
Re: Arm China Has Gone Rogue
#15This is the standard Chinese operating model, as I understand it. Accept foreign subsidiary investment on condition of 51% Chinese ownership, transfer the technology, then turn around and compete with the parent. It was a similar story with maglev trains.
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Softbank held 49%. "SoftBank subsidiary sold a 51% stake of the company to a consortium of Chinese investors for paltry $775M."
Re: Arm China Has Gone Rogue
#16Perhaps, as Scott Adams has said, "It is not safe to do business in China."
It is also not safe, from a business perspective, to ignore China altogether. Very difficult situation indeed.
Re: Arm China Has Gone Rogue
#17So, I cannot see this sort of thing stopping, until we see a point where non-Chinese investors revolt when they hear about the company they've invested going into China, rather than cheering. If investors have had such a change of heart at this point, I have not seen it.
Re: Arm China Has Gone Rogue
#18So, I cannot see this sort of thing stopping, until we see a point where non-Chinese investors revolt when they hear about the company they've invested going into China, rather than cheering. If investors have had such a change of heart at this point, I have not seen it.
This sort of thing definitely has deterred investment in China. I was aware of it (in a very different industry) twenty years ago and it definitely affected decision making. It's impossible to track investments not made though.
Re: Arm China Has Gone Rogue
#19This article is entirely misinformed. Arm China already makes all these products, and has for years. This is a rebrand of existing products.