Thu August, 2020, Age: 3 years
UK-based chip designer company Arm appears to have lost control of its joint-venture subsidiary, Arm China, following leadership disputes in May. Last week, Arm China issued a statement affirming its commitment to “empowering the foundation of China’s semiconductor industry.” This internal strife comes at a pivotal moment for the semiconductor industry. While China has long sought to gain an indigenous and self-sufficient semiconductor supply chain, the U.S. has worked to cut the access of China-based companies to critical suppliers such as Intel, AMD, and TSMC using export controls and other trade levers. If Arm China were to gain full independence from its parent company, it could potentially ensure that Chinese firms like Huawei and SMIC retain access to valuable semiconductor architecture licenses.
