Arm China executives went to Chinese processor startup Borui but

Arm China executives went to Chinese processor startup Borui, but it poses no threat to Arm

The peculiarities of doing business in China continue to cause headaches for the British arm holding company. Financial flows in this large market are traditionally controlled by Arm China, in whose capital the parent holding company indirectly controls no more than 4.8% of the shares. It has now become known that a number of high-ranking employees from Arm China have moved to the Chinese startup Borui Jingxin with the support of the authorities of the People’s Republic of China.

    Image source: Getty Images

Image source: Getty Images

At least the agency Bloomberg announced the transfer of the head of the development department, the head of the sales department and Yang Bo, the chief specialist for interaction with authorities, from Arm China to Borui. The latter was even appointed CEO of a young Chinese company financially supported by the Shenzhen government. Borui is also an Arm licensee and intends to develop processors for server applications.

The Chinese market is where Arm generates about a quarter of its revenue, but sources familiar with the state of the industry said Borui does not pose a competitive threat to the British holding company’s business in that region. On the contrary: the emergence of a potentially successful Arm customer will increase the British developer’s sales in this country. However, in February, Arm China made staff cuts, and a significant portion of the approximately 100 laid-off processor engineers found new jobs at Borui. Representatives of the latter told Bloomberg that the company has no conflict of interest with Arm China and is its customer. The Chinese company wants to develop chips for cloud systems and controllers for edge computing.

In February, Borui’s capital was increased to $1.1 billion following another round of funding from three companies said to be linked to the Shenzhen municipal government. The company is looking for developers; a senior engineer is offered an annual salary of more than $150,000 on a job posting site.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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