Arm Sells Stake in China JV as EU Warns of Unfair Practice

Nitin Dahad, eeTimes
6/7/2018 00:01 AM EDT

LONDON — SoftBank Group, owner of microprocessor IP firm Arm, announced this week that the British firm will sell its majority 51% stake to Chinese investors and ecosystem partners for $775.2 million to form a joint venture for Arm’s business in China. Under the agreement, Arm will still receive a significant proportion of all license, royalty, software, and service revenues arising from Arm China.

Arm had already transferred its IP to the joint venture last month, enabling its Chinese operation to enable local chip developers license technology directly in China. This has raised alarm bells within the European Union, with the EU Commissioner for Trade, Cecilia Malmström, launching legal proceedings last week in the World Trade Organization (WTO) against Chinese legislation that undermines the intellectual property rights of European companies.

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