LONDON The are no plans to move the headquarters of ARM Holdings from the U.K. to take advantage of more advantageous tax regimes elsewhere according to Warren East, CEO of ARM Holdings.
Speaking on the BBC Radio current affairs program Today this morning East said “Of course we look at that sort of thing all the time. The fact is our business is very long term and rules and regulations change around the world all the time. Our market is global and we are a global company.”
“As it happens, engineers in the U.K. are very inventive [and] creative and we have about 600 of our 1700 people based in the U.K. Right now that were the headquarters looks like they are going to stay.”
East said that design teams around the world work together. “We have some design teams in America, designers in Dallas and Silicon Valley … as well the U.K., France, and India.” East says the headcount at ARM is essentially flat.
Around 95 percent of ARM's revenue is in U.S. dollars and about 50 percent of its costs. “We were pleased in some ways to see U.K. currency weaken in the second half of last year although it was a lot quicker than we expected but certainly was a welcome boost,” said East. He revealed that ARM earns around six times more royalties from a high end smartphone as basic model. “We need people to buy the simple phones so that one day they will upgrade and get a more complex product.”
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