The Anonymous Widower

ARM: Can ‘Crown Jewel’ Of UK Technology Be Protected?

The title of this post, is the same as that of this article on the BBC.

These are the introductory paragraphs.

The UK government is “looking at options” to protect and ensure future investment in Cambridge-based ARM Holdings, which is being bought by US tech giant Nvidia from Japan’s Softbank.

This is a much more relaxed attitude than the government took when Softbank bought the world-leading chip designer in July 2016. At that time, Softbank announced it had agreed to legally binding commitments to increase investment, headcount and preserve its headquarters in the UK.

It is not too late for the government to impose conditions, but conversations on whether to impose them or what they might be have not even started.

Some of the original founders of ARM Holdings, would appear to be not very happy.

I have followed the company for a number of years, as I was in the same class at Liverpool University with Robin Saxby, who was ARM’s first CEO.

At great surprise to myself, I made a nice sum of money by investing in the shares at the right time.

I am less unhappy, as I think two opposite outcomes would be good for the UK.

  • It all goes pear-shaped and large numbers of talented engineers in Cambridge create several children of ARM.
  • Nvidia decides that the ARM model and location is better and moves the headquarters of the group to the UK. Trump and his policies could make this likely, by picking fights with countries where Nvidia and ARM have large markets.

It will be interesting to see what happens.

 

September 14, 2020 Posted by | Business, Computing, Finance | , , , , | Leave a comment