A senior Conservative politician has said the UK government made a serious mistake by allowing the sale of British chip designer Arm, reigniting debate over the country’s approach to protecting strategic technology assets.
Speaking this week, the senior Tory figure argued that handing control of Arm to foreign ownership weakened Britain’s long-term position in the global semiconductor industry. The comments mark one of the strongest criticisms yet from within Conservative ranks over the 2016 decision to approve the company’s takeover.
Arm, founded in Cambridge, has become one of the most influential chip design firms in the world, with its technology embedded in billions of smartphones, computers, and connected devices. Critics have long warned that losing direct national influence over the company could leave the UK exposed as competition over advanced technology intensifies.
The Conservative figure said the deal should serve as a lesson for future governments, stressing that strategic industries require stronger safeguards, even in an open-market economy. “This was not just another corporate transaction,” they said, describing Arm as a national asset whose value goes beyond financial returns.
The remarks come as the UK government reassesses its industrial and security policies, particularly around semiconductors, artificial intelligence, and critical infrastructure. In recent years, ministers have signaled a tougher stance on foreign takeovers in sensitive sectors, introducing new powers to block or unwind deals deemed a risk to national interests.
While supporters of the original sale argued it helped Arm expand globally, critics say the long-term strategic cost outweighed the short-term benefits. The renewed criticism suggests that Arm’s fate continues to shape political thinking on how Britain balances openness to investment with economic sovereignty.
