Err, yes, yes it is

It is not companies like ARM that will in themselves drive up the country’s pay and productivity.

Average pay is set by average productivity in the economy. Having high productivity and high pay companies like ARM in the economy thus pushes up average pay.

Come on, this is basic, basic, stuff.

Technological excellence and innovation are not enough; but if leading companies, like ARM, that are most likely to drive such a transformation are sold abroad, their tax revenues and ultimately their management put in the hands of individuals with less stake in the country, their strategic value is at least compromised.

UK profits will be taxed just like they are now. Non-UK profits aren’t taxed in the UK today anyway. So, no change there then.

Idiot fucking Guardian.

despite Brexit – which, by causing sterling to depreciate sharply, made it such an attractive deal

ARM’s revenues are almost entirely in US $. That’s why the share price rose 20% following Brexit and before the bid, as sterling declined against the $ making that foreign income stream more valuable in sterling.


And this tosser definitely needs a reaming:

Over the past few decades Britain has sold companies to overseas interests at an unprecedented level,

Britain has sold fuck all. Some number of British people might have sold their private property but that’s a rather different thing, isn’t it?

27 thoughts on “Err, yes, yes it is”

  1. > “Britain has sold fuck all”

    Well, except all the utilities, Qinetiq, and so on. Those definitely belonged to Britain.

  2. I’d actually say that ARM are perhaps reaching the upper end of where they’re going. Everyone’s got a smartphone, they aren’t changing them as often. Sure, there might be some internet enabled stuff, but it won’t be huge. It’s mostly gimmicky bullshit.

  3. @Dio

    Does ARM do ANY manufacturing whatsoever?

    I didn’t think it did, may be wrong though.

  4. ARM themselves don’t do manufacturing, they just do core design and software. The chipsets based on their designs are built by other companies like Samsung.

  5. Don’t ARM do most of their manufacturing overseas anyway?

    Does ARM do any manufacturing at all?

    I thought their entire business was the chip design, which they license to anyone wanting to build it.

  6. “UK profits will be taxed just like they are now”
    But if corporation tax is abolished, that won’t be the case, n’est ce pas?

  7. The Inimitable Steve

    So apparently ARM being bought for £24Bn is “a sad day for the UK tech industry”.

    Eh, rilly?

    Ferranti closing down – after being conned into buying a CIA shell company – was a sad day for UK tech. ARM is a £24Bn success story.

    For ARM does indeed do the clever, value-added stuff that you can’t simply pack up in containers and ship overseas.

    The value in ARM is its patents and human capital, and if its clever boffins feel like launching another UK tech startup there’s nothing stopping them. In fact, it’d probably be easier than ever for them to get investment after today’s news.

  8. Steve – “Ferranti closing down – after being conned into buying a CIA shell company – was a sad day for UK tech.” Hadn’t heard that one before. Brief google has come to nowt. Any chance of a linky, anyone?

  9. Did find that Icke had a page all about Ferranti but didn’t look inside it for fear of brain-mangling.

  10. I do shudder at the words industrial strategy, as I did Northern Powerhouse. Aren’t they basically the same thing?
    My main concern is that Strategic National interest which is bound to be there somewhere in the strategy spiel becomes Strategic Political interest in practice.
    The EU competition rules for state aid are the first thing that Davis should concede to but after a hard fight and look dour and grumbly when he does so.

  11. MyBurningEars

    Your Google search can’t have been that good: it’s on the Wikipedia page for Ferranti.

  12. “Britain has sold fuck all. Some number of British people might have sold their private property but that’s a rather different.”

    Not for a Guadian reader.

  13. The Inimitable Steve

    MBE – brief summary of the affair here.

    The MoD, BTW, tried to warn them off buying ISC but their idiot board didn’t listen.

  14. the existing owners of ARM now get 24 billion -which they can redploy elsewhere generating more jobs. perhaps we should prevent those damn furriners from freeing british entrepreneurs to indulge in more enterpreneuring

  15. Seems from some of the comments dotted over ElReg, that ARM aren’t particularly high payers, wages wise.

  16. ARM’s a pretty good company, imperfect (obviously) though it may be.

    They sell other people *designs* – designs of processors, of the stuff that hooks up processors, GPUs (to do the graphics that you enjoy on your tablets and maybe in your car), and all sorts of necessary and desirable ancillary stuff.

    Their customers then assemble a chip from the ARM designs (and any other stuff they may want), and build products from the chip, or sell the chip to others to build products.

    Many other folk used to design such processor “cores” etc, like Freescale Semiconductor (nee Motorola Semiconductor). But ARM had an unfair advantage – their only products were the cores and so they had to be bloody good – better than the stuff that Freescale (for example) could design itself, at least in ways important to customers. And they could amortize the cost of their designs over many more actual chips than any single semiconductor vendor could ever do (ignore Intel, behind the curtain over there). And, further, ARM sort of ‘lead from behind’. By the time they needed to introduce a design at a particular power and performance point, there was always a decade’s worth of experience and knowledge accumulated in places like Freescale on what worked well and whats isn’t so hot. So lower cost of invention, better mix of features. Eventually, it became not worth the bother of designing your own cores IF ARM had one at more or less the performance point you needed. Except for folk like Apple, who were going to put the processor in a chip of their own devising, in products of their own devising, running software of their own devising (or built using Apple toolchains) – Apple designs and builds their own ARM cores, having bought an architecture license (which is what you need to do that).

    ARM are still pretty damn good. Arguing with any of their senior chaps makes this perfectly clear.

    But – worth $32B – ouch; that’s a lot of moolah…

  17. The purchase of ARM has been described in many places as “investing” in ARM. I know I’m showing my ignorance here, but how on earth is /buying/ something /investing/ in it? Investing in something is putting money in it to improve it, not buying the thing itself.

    When I bought my house I wasn’t investing in it, I was buying it. Five years later when I spend a load of money putting a new roof on it, /that/ was investing in it. I /invested/ in the _house_ by /buying/ a _roof_, not by /buying/ the _house_. And I wasn’t investing in the roof I was *buying* a roof to invest in the *house*.

  18. Good point jgh.
    In a sense people buying FTSE100 shares ( IPOs excepted ) are not investors, but what they are doing is allowing a previous generation of investors to cash out. Thus, a good investment climate exists here at the moment.
    People who don’t want ARM being sold, don’t want investment in the UK by free enterprise. Feck ’em.

  19. Murphy must be positively seething at the thought of a foreign company paying such sums for IP (which, after all, candidly has no value).

    O/T it’s been a pleasure seeing Murphy squirm and wriggle like the fat worm he is over his decision to drop Corbyn. Must really irk the egotistical prick that he backed the wrong horse only for them to piss on his chips.

  20. @Ducky McDuckface, July 19, 2016 at 2:18 pm

    “Seems from some of the comments dotted over ElReg, that ARM aren’t particularly high payers, wages wise.”

    ElReg is infested with Gaurdianista comment trolls since their “New Year Resolution” to be a safespace for snowflakes.

    Other than Andrew O almost nothing worth reading there now.


  21. Bloke in Costa Rica

    “despite Brexit – which, by causing sterling to depreciate sharply, made it such an attractive deal”

    This is the most telling part of that article. If you don’t know in which currency the company about which you are writing books its revenue then you are not equipped to be offering an opinion. It would mean that you are either too idle to look it up, or do not know how to read a financial statement.

  22. Pcar: was from memory, about this time last year IIRC. Haven’t paid much attention to the comments section since our esteemed host was given the Spanish Archer.

    Apart from Dabbsie, that is.

  23. @ Andrew Carey
    Would you like to name an IPO that was a FTSE-100 share? Have you confused “IPO” with “Rights Issue”?
    Anyone taking up a Rights Issue is an investor in the company, not just a purchaser. I have stumped up for Rights issues and/or taken dividends in scrip rather than cash in half the companies whose shares I hold.

  24. And, of course, no Britons ever buy stakes in non-British companies.

    I thought we were supposed to be FOR financial integration. I wish they would make their minds up!

  25. Hi john77; the words came out wrong. I meant to say that government IPOs ( many of which immediately become FTSE 100 companies ) don’t count as investment, in the sense that the initial investors aren’t the ones cashing out.
    Rights issues are taken up by investors like you said.

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