The Financial Times recently published an article by Tom tugendhat, a member of the British Conservative Party and a member of the British Foreign Affairs Select Committee. The article believes that the British government should rescue arm. The article believes that after the brexit referendum, the British government was eager to show the world that it really wanted to go global to show openness. Therefore, the British government decided to sell its national treasure arm to Softbank. The sale aims to provide a "long-term residence" for the UK's only top semiconductor high-tech enterprise, and Softbank promises to ensure the innovation ability of arm and the security of technology research base.
The article pointed out that at that time, two crucial things were not clear. First, whether arm will play a key role in protecting national security and maintaining global competitiveness at a time of heightened geopolitical tensions. Secondly, Softbank itself will expand excessively. More than three years later, arm became a victim and faced the situation of resale to NVIDIA, an American chip company.
The risks faced by national security and competition cannot be ignored. After the $40 billion NVIDIA deal failed in February, the government should reconsider how to retain a company that is crucial to the UK's future.
Softbank now wants arm to be listed independently. Although the government, the London Stock Exchange and the investment community have vigorously launched a lobbying campaign to persuade Softbank to choose London as its main listing place, it seems more likely to be listed there given the technical focus and stronger capital pool of NASDAQ.
According to the analysis of the article, capital is not the only factor. The conflict between Russia and Ukraine and the chip sovereignty plan of Chinese Mainland make national security a key component of technological leadership.
The article believes that the last effort made by British Prime Minister Boris Johnson recently to persuade Softbank to choose London as its main listing place has been welcomed, but it is too late to take timid compromise measures. In the interests of national security and the scientific and technological base on which Britain's economic strength depends, Britain needs a bolder long-term strategy.
The article points out that the British government should ensure the interests of the UK by means of gold shares. For example, it can promise to buy 25.1% of arm at the market price to promote, support and force it to be listed in London when necessary. This will ensure the future of arm and end years of anxiety.
There are similar precedents. In order to ensure the future of oneweb, a satellite company, the British government invested US $500 million and established the principle of providing strategic support to technology companies. British government investment has the power and ability to become a long-term holder of arm.
As a major shareholder, the government can attract investors from other UK private companies to list in London. Different from the remaining shares held by Softbank after its listing, the interests of the government will be held for a long time, creating reinvestment opportunities for long-term investors.
The article also suggests that the UK government will not and should not try to control arm or its daily activities, but to ensure that the company operates with the goal of scientific innovation ability in the key global industry of semiconductor.
Finally, the article points out that providing security and stability for arm's long-term investment and protecting its business philosophy is a major event related to national interests, and the government should take immediate action.
(proofread / Stein)