Arm says it has 'successful working relationship' with Chinese joint venture run by CEO who refuses to leave Arm has downplayed an analyst's view that its Chinese joint venture conducted a "heist" that damaged Arm's prospects in the Middle Kingdom. The chip biz is referring to this piece by Dylan Patel, chief analyst at an outfit named SemiAnalysis, which is titled: "The Semiconductor Heist Of The Century – Arm China Has Gone …
Yes but the analysts predictions are what people make money from.
Real data is just the tool that makes the first possible. We have so many analysts now in almost every field being paid huge amount of money to invent stories it is unreal.
Just look back to the crash when the inimitable Robert Peston first made an appearance. Every time he opened his mouth he made it worse.
Does ARM China physically possess all of ARM's IP? ..... YetAnotherJoeBlow
That pertinent impertinent question takes us all into the COSMIC* Virtual Realms of AstraMetaDataPhysics, YetAnotherJoeBlow. And it's AI and IT Quantum Communications Fields are littered with the graveyards of empires and wannabe absolute rulers.
The wise would surely counsel the most likely answer to your question to be ..... Probably certainly yes, for why ever not whenever possible of course ‽ .
COSMIC* ....... Control Of Secret Materiel in an Internetional Command
Dylan Patel's analysis may very well be crooked, and even wilfully designed and intended to be wantonly mischievous and political subversive.
Such certainly doesn't do the SemiAnalysis business any great favours if even one of its analysts are found to be concluding matters wrongly and sharing those opinions widely in the company's name.
Arm Ltd's statement on the matter clearly dismisses and discredits the concerns raised by DP's analysis.
7-1 board vote to kick him out, including the Chinese investors.
So they won't recognise Arm China's license deal as legal outside of China, regardless of any decision inside of China. Making their chip plans useless for exports, effectively puts an end to their hopes of making their own chips, then exporting them.
No court outside China would recognise his failure to hand over the company seal to the company as legal, they'll cite his security team (loyal to him not the company) as proof of malintent. That in turn will taint those chips deals, even if they're clean room RISC, if they seized Arm IP, it will taint their own work.
And can you imagine the damage they'd do if they side with the CEO over the board for the company seal? How many company CEOs would go rogue then.
Wu should leave, this should end quietly, he's done enough damage to China with his shit.
[added] The west wants to define China as stealing IP, Wu hands them the biggest PR victory needed to pass laws constraining China's own developements in chips. What an idiot.
What it is is a giant warning sign for companies wanting to set up a branch in China.
Do so and you will run the risk of losing your IP to a local who refuses to obey your commands.
I don't think there's any other country in the world where the subordinate relation between a branch and company headquarters has ever been put into question. The Board wants you out ? You leave. Period.
But apparently, in China, that's not how it works.
Well I'm sure of one thing : even if I become a billionaire, I'm not setting up shop in China until I have the guarantee that no local can refuse my orders.
Well, the warning signs have been visible for years. This is just one m ore of many. It's the way Chinese law works. If you as a foreigner want to set up shop in China, you need a local "sponsor" who will own 51% of your Chinese operation and have total access to any and all IP used in said business. That's been the case for decades and anyone setting up there knows that up front. Sadly, the rush for cheap labour and short term profits has blinded many to the long term problems. But once a few did it, everyone else pretty much had to do the same or see their market share eaten for lunch by those who did it first. Other cheap labour countries with less onerous ownership laws are and were available, but China has the money to invest in new plant and subsidies that other countries simply couldn't beat. Things are changing, but China is still reaping the harvest of decades of outsourcing production and has created it's own production and market.
You'd think so, but in reality this has been happening to companies that outsource to China since the 80s. You think Huawei just accidentally made entirely identical parts right down to typos in the manuals as Nortel? Truth is as long as it's cheaper to make things in China CEOs over here will pressure governments to give this a huge pass because surely it only happens to the other guy.
Size matters.
This on the transfer topic.
The importance of China’s high-speed tech transfer policy.
https://www.railway-technology.com/features/featurethe-importance-of-chinas-high-speed-tech-transfer-policy-5748075/
But I would shut up regarding the "stealing", companies are there because they expect to gain from it, and if they are not somebody else will and they don't like that to happen either.
If we want to be really worried about technology transfer we would close universities for foreign students but that would perhaps bankrupt them so it won't happen.
No court outside China would recognise his failure to hand over the company seal to the company as legal
That would probably happen in an ideal world, but in reality China has a whole arsenal of incentives at their disposal to make sure any court will rule in their favour. This is also going to be easy for them, as corruption has been virtually legal in the West - one would have to be extremely unlucky - or found to be not sharing the bribe with the higher ups, to be charged and even then it is extremely difficult to prove. If they put money or deeds in an Escrow with 5-10 years release time there is not much that can be done. Before it gets investigated, any changes will be irreversible anyway.
It's probably a lesson for other corporations to not touch the poisonous tree.
They've already announced they are pushing their home grown Loongson architecture. Yes it doesn't have the infrastructure the ARM ecosystem has, but China will be able to get there quickly if the government is pushing everyone in the same direction towards Loongson.
In the long run ARM China will probably be licensing Loongson architecture designs, but for now they need to keep up the flow of ARM designs for the markets where Loongson isn't ready. Obviously ARM itself isn't going to support efforts that have the goal of eliminating ARM from China, that's probably what this breakup is about.
Is the more simple matter of foreigners and/or foreign governments with billions of dollars worth of credit/investment/flash fast cash resting in banks and banking systems, and "frozen"/suddenly subjectively deemed unworthy of return to account holders for whatever reason at all, not Grand Theft Autonomous and not that dissimilar to a charge of Grand IP Theft, but a much more egregious assault on the whole of humanity?
Or is that sort of monumental blatant theft quite different and perfectly acceptable to you, whilst for others it would be universally recognised as criminal ?
On what side of the Great Divide do you reside and preside?
Here's a simple lesson you might like to quickly learn:-) .......... And it's gone. Your money. It's gone:-)
It's no smiley ROFL matter though, is it. ....... but do you recognise it as a fundamental problem which is crashing and crushing all perverse and corrupted systems around you?
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