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Prospective investors in Arm’s initial public offering have raised concerns over the UK chip designer’s exposure to China, after the company warned of “significant risks” in the country.
Managers at four separate funds considering an investment in Arm told the Financial Times that the prospectus for the planned listing on Nasdaq in September confirmed some of their fears about the global semiconductor industry amid souring relations between Washington and Beijing.
Arm revealed in its IPO filing on Monday that it made a quarter of its revenues from China and warned that it was “particularly susceptible” to economic and political risks, including tensions between China and the US or UK.
Some investors said these issues overshadowed SoftBank’s pitch that Arm would benefit from the demand for chips that has propelled US chipmaker Nvidia to a $1tn market…