Arm CEO and SoftBank CEO Discuss Arm’s China Subsidiary and SoftBank’s Exposure in China

Arm Holdings CEO Rene Haas stated in an interview with that despite the geopolitical challenges of recent years, Arm’s China subsidiary is performing well and has strong potential in data center and automotive applications. However, SoftBank CEO Masayoshi Son revealed that SoftBank has significantly reduced its “exposure in China”.

Arm’s Dependence on Chinese Customers

Arm relies on Chinese customers who are currently able to purchase the company’s semiconductor technology and designs. While Arm and SoftBank do not directly control their China subsidiaries, Arm China still accounts for nearly a quarter of Arm’s fiscal 2023 revenue.

Potential Pressures on Arm’s China Subsidiary

In the coming months, Arm’s relationship with its China subsidiary may face additional pressures. The Biden administration has implemented strict export controls on high-powered semiconductors used for artificial intelligence, impacting companies like Intel and Nvidia. As Arm sells designs to many chip companies, these restrictions could impact its business.

SoftBank’s Reduced Exposure and Portfolios

SoftBank has been steadily reducing its stake in Alibaba over the past few years. CEO Masayoshi Son attributed this to SoftBank’s own portfolios, as the company has experienced losses in its Vision Fund I and II. Additionally, SoftBank’s investment in TikTok owner ByteDance has faced scrutiny from the U.S. government regarding data collection practices.