Markets lifted by deal-making frenzy – business live

Hermann Hauser, ARM’s co-founder, says the sale of ARM to a US firm was an “absolute disaster for Cambridge, the UK and Europe”.

He warned that it would lead to job losses in the UK, destroy the UK firm’s business model and impinge on UK economic sovereignty. Any promises made on jobs are “meaningless unless they are legally enforceable,” pointing to the takeover of Cadbury by US company Kraft in 2010.

Hauser told BBC Radio 4 this morning:

“The headquarters [will] move to the United States as they inevitably will when ARM becomes a division of Nvidia. This will lead to job losses in Cambridge, Manchester, Belfast, Warwick where ARM employs thousands of people.

Secondly, Nvidia will destroy ARM’s business model… which is being the Switzerland of the semiconductor industry of dealing with over 500 licensees, most of which are competitors of Nvidia.

The reason why ARM has 95% market share of mobile phones in the world is because there’s a lot of competition between the 500. If this will now be done by a single company there is a monopolies problem.”

The third reason, he said, was “by far the most concerning,” the impact on economic sovereignty for the UK. If ARM becomes a US company, it will come under US regulations, he warned.

“Which means that if hundreds of UK companies that incorporate ARM in their products want to export it to anywhere in the world including to China which is a major market, this decision on whether they are allowed to export it will be made in the White House, and not in Downing Street.”

Rory Cellan-Jones
(@ruskin147)

https://t.co/3husABs2lg ARM, crown jewel of UK tech, sold on by Softbank to Nvidia for $40billion. Deal described by cofounder Hermann Hauser as a disaster – he’s writing to 10 Downing Street warning it will destroy the firm’s business model and make Britain “a US vassal state.”

September 14, 2020

The Guardian

Leave a Reply