Arm China lays off staff amid chip war and licensing concerns
Arm may be doing well, but its China-based joint venture has reportedly laid off a significant number of staff in the face of a challenging business outlook., which would represent about 14 percent of the entire operation's workforce, understood to be in the region of 700 personnel before the changes.
Reuters cited sources"familiar with the situation" who said the layoffs chiefly comprised engineers involved with research and development. These sources indicated that some of Arm's customers in China are concerned about developments such as the ongoing semiconductor war between Washington and Beijing, which may potentially lead to them being denied access to Arm technology.late last year that ecommerce giant Alibaba was not being granted access to Arm's high performance Neoverse V-series core designs for its cloud datacenters because Arm believed the US and UK governments would block the export of that technology.
Chinese customers are also said to be concerned about speculation that Arm is set to make major changes to its licensing model, which areArm China is the distributor for Arm intellectual property in the country, and thus collects licence payments on behalf of the chip designer. However, Arm's parent SoftBank sold off a 51 percent stake in the company
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