ARM Holdings has an overwhelming share of the semiconductor market for mobile products such as smartphones. In September 2017, a joint venture “ARM mini China” was established in Shenzhen, Guangdong, China. It was originally considered to be the only base responsible for limited services such as customer support.
However, as of the end of April this year, major businesses that allow local customers to use ARM technology for licensing were transferred from ARM Holdings to a Chinese joint venture. “Not under pressure from the United States, which tried to limit support for Chinese companies, China has the ability to absorb technology. The relevant personage in the semiconductor industry in China believes that the localization of ARM Holdings has made progress and there is a sense of vigilance against US operations behind it.
ARM Holdings's shareholding in the local joint venture is only 49%, and the remaining 51% is centered on Chinese banks such as state-owned Bank of China and Baidu’s largest Chinese search engine service provider. In terms of operations, China’s intentions are easily reflected.
The Chinese government’s manufacturing upgrade concept “Made in China 2025” positions the semiconductor industry as a key issue. This is because semiconductors can be used in advanced areas such as production automation, artificial intelligence (AI) and the Internet of Things (IoT). The key in the forefront of the world.
It is the United States that closely follows these Chinese strategies. China’s state-owned company Ziguang Group planned to acquire memory giant US Micron Technology and Western Digital (Western Digital) in 2015. However, it was hampered by investigations by US regulators. The result was a setback.
The attempt to curb the growth of China's high-tech industry was further evident after the Trump administration came to power. As a sanction against China’s infringement of intellectual property rights, discussions are underway on the introduction of high tariffs on industrial robots. In mid-April, ZTE was called from the United States. Iran illegally exported communications equipment and decided to ban its transactions with US companies.
The Chinese side is wary of US intervention and at the same time accelerates the absorption of cutting-edge technologies. According to market-related sources, there are special records in the data of ARM-controlled Chinese joint ventures. As a condition of funding, foreigners are prohibited from submitting to the United States and the United States. Relevant person in the Investment Review Committee (CFIUS) resells equity. CFIUS is an American agency that reviews foreign investment in the United States.
The joint venture strives to conduct initial public offerings (IPOs) in China from 2021 to 2022. The review generally takes several years, but it is believed that the Chinese government will adopt special regulations to quickly complete the review. The views are currently strengthened. Recently, Taiwan Hon Hai Precision Industry Core Subsidiary The listing review passed the shortest 36 days in history.
As the growth of IT (informational technology) industry will bring about a rapid expansion of semiconductor demand, the Chinese market is full of great charm for the world's large semiconductor companies. South Korea’s Samsung Electronics and Intel of the United States have all started large-scale factories in China.
In addition, China’s determination to nurture the semiconductor industry is also very strong. Local governments attract companies through subsidies and other initiatives. There are also local government-funded cases, such as the world’s third-largest semiconductor foundry company in mass production in Xiamen, Fujian, in October 2017. UMC's new factory.
U.S. Secretary of the Treasury Muuchin and his colleagues visited China on the 3rd and 4th, and negotiated trade issues with the Chinese side. It seems that the sanctions on high-tech industries should be used as a weapon to force China to cut its trade surplus with the United States. However, it will also appear like ARM. Worry about sanctions and promote the localization of enterprises, so the effect of high-tech sanctions in the United States is still unpredictable.
Nihon Keizai Shimbun (Chinese version: Nikkei Chinese) Ibara Kensaku Zheng Tingfang Taipei, Muzhixiong Hong Kong