Arm's Chinese Fortunes in Jeopardy? Inside the Rise of Borui Jingxin
Portfolio Pulse from Anusuya Lahiri
Arm Holdings Plc is facing a potential challenge in its largest market as several of its former employees from its Chinese venture have founded a new chip design company, Borui Jingxin. This comes after Arm raised $5 billion in an IPO. The new company, backed by the Shenzhen government, aims to become a significant licensee of Arm, focusing on chip designs for servers. Investors are concerned that Borui might divert revenue from Arm's China venture. Arm's major clients include Apple and Qualcomm.
October 12, 2023 | 12:43 pm
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NEGATIVE IMPACT
Apple, a major client of Arm Holdings, could potentially be affected by the challenges faced by Arm in China. Apple depends on China for nearly 20% of its annual revenue.
As a major client of Arm Holdings, Apple could potentially be affected by the challenges faced by Arm in China. Given that Apple depends on China for nearly 20% of its annual revenue, any disruption in Arm's operations could have a negative impact on Apple's financial performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Arm Holdings faces a potential challenge in its largest market, China, as former employees found a new chip design company, Borui Jingxin. This could potentially divert revenue from Arm's China venture.
The founding of Borui Jingxin by former Arm employees could pose a significant threat to Arm's market in China. This could potentially divert revenue from Arm's China venture, negatively impacting its financial performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Qualcomm, a leading chip manufacturer that relies heavily on Arm's product designs, could potentially be affected by the challenges faced by Arm in China.
As a leading chip manufacturer that relies heavily on Arm's product designs, Qualcomm could potentially be affected by the challenges faced by Arm in China. Any disruption in Arm's operations could have a negative impact on Qualcomm's product development and financial performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70