Ex-ARM members launch a startup to compete with their former employer

Borui Jingxin, a startup receiving government backing from Shenzhen, is actively seeking fresh investments to attract engineers, even reaching out to talent from ARM Corporation.

Two and a half years ago, key former employees of ARM’s Chinese division, including the former head of ARM’s research department, a regional sales director, and the CEO who was previously a government relations specialist, departed to establish the independent chip manufacturing startup, Borui Jingxin.

Specializing in server chip development, the company is a significant licensee of ARM. Despite being associated with ARM, Borui Jingxin insists it doesn’t view itself as a competitor to its former employer.

Nonetheless, some investors express concerns about potential competition between Borui and ARM’s Chinese unit, resulting in a 15% decline in the company’s shares since going public. During its IPO, ARM generated $5 billion, falling short of the anticipated $8 billion.