Deciphering ARM China: can joint venture enhance Chinas chip capability?

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 Deciphering ARM China: can joint venture enhance Chinas chip capability?


Arm will not respond to all unconfirmed market conjectures. Recently, a number of reports on Arms joint venture with China say that China will hold shares and the joint venture will seek IPO in China. Behind Arms joint venture with China is that Arm has already deployed several initiatives in China recently. 4 months ago, Arm China adjusted the company structure: ArmLimited no longer directly held the equity of an electronics technology (Shanghai) Limited (hereinafter referred to as Shanghai), and transferred its equity to an AI technology (China) Limited (hereinafter referred to as Ann China). (Shenzhen) Limited, founded in December 21, 2016. 20 days ago, ArmLimited funded a total of $700 thousand to set up a business company in Shanghai, named GrahamStephenBudd, chairman and general manager of ruagus Trade Co., Ltd. (hereinafter referred to as Ruge). He is also the director of Anne China and Shanghai. During this period, investment platforms related to Arm have also been in place. In March 20, 2018, an investment management partnership (limited partnership) was registered in Ningbos Meishan bonded port area. The companys contributors included several Arm executives in China. Earlier, Arm has completed the layout of the business accelerator field in China. In Beijing, Shanghai, Chongqing, Nanjing and other places, it has set up a wholly owned company named an Chuang space. An architecture of China The registered address of an MOU China is located in Room 201, building A, No. 1, Qian Wan first road, Shenzhen Hong Kong cooperation zone, Qianhai, Shenzhen (Shenzhen Office of Qianhai business secretary). The economic observer of the Qianhai e station service center, No. 19, former Bay No. 19, has been told that the so-called front Bay No. 1 A No. 201 room does not exist, but the registered address of the enterprise of Qianhai district is registered, the registered address of the enterprises in Qianhai section is 10, and the enterprises that need to be registered can choose one of the 10 addresses freely. In the public information, Anne China is more like a management platform. The main body of Arm patent registration in China is ArmLimited. ArmLimited has 3307 patents and there are no patents in Chinas two companies. An Shanghai name in 2002 has the copyright of an ArmDeveloperSuite development software, and Shanghai holds the Arm brand. Obviously, the cooperation between Arm and China has existed for a long time, but the real patent is still in the hands of its parent company. Han Xiaomin is general manager of integrated circuit industry research center of Sai Di Research Institute. Before Arm and the Chinese government, the mode of cooperation is more traditional industry alliance and talent training form. Han Xiaomin said. Liu Weidong, the Secretary General of the Tsinghua Alumni Association Semiconductor Association and Liu Weidong, the chairman of the electronic board of electronics, is more direct: Arm is now only a sales and technical support office in China. Arm does not own chips, its business mode is IP authorization, and it charges one-time technology licensing fees and royalty royalties through intellectual property rights authorization. Arm has three modes of authorization, namely processor, POP and architecture authorization. Processor authorization refers to the authorization vendor to use Arm to design a good processor. The other side can not change the original design, but can adjust the frequency and power of the product according to its own needs; the POP authorization is that Arm sells the optimized processor to the authorized cooperative manufacturer, which is convenient for its design and production performance under specific work. Processor, and architecture authorization is Arm authorized cooperative partners to use their own architecture, and manufacturers can design their processors according to their own needs. Qualcomm, Samsung and HUAWEI are all based on the Arm instruction set architecture chip. Because of the rise of mobile devices and the popularity of large household appliances and automobile systems, chips produced based on Arm instruction set almost monopolize the market of embedded and mobile terminals. According to the PPT on its official website in the third quarter of 2017, the Arm chip technology has accounted for about 90% of the global mobile processor processor (MobileApplicationProcessors) market share as of 2016. The company is basically made up of R & D personnel. According to the KPI in the third quarter of 2017 on its official website, its employees reached 5708, of which 4677 were technical personnel, and 80% of the employees were technicians. Arm products are divided into three categories: smart phone series, wearable series, and Internet of things series. The main business is divided into technology licensing, patent fees and software and services. From the 2017 Q4 earnings report, only three business revenue reached 520 million dollars in the quarter, of which royalty revenue accounted for about 57% of total revenue. Rui Ge in ArmLimited, just set up. This is a main business company. The main business includes: electronic equipment, computer software and hardware, communication network equipment, import and export of office equipment, wholesale, commission agent (without auction), and provide relevant supporting services, and the lease of the above equipment. The registered capital is 700 thousand dollars. Hatching and investment What is more concerned is the layout of Arm in China over the past few years. In Chinas huge Internet of things and the driverless market, many people in the industry believe that Arm should tighten its layout in China. Now, Arm has a potential competitor, RISC-V, RISC-V is a completely open source instruction set that can be used free of charge. India has defined this set of instructions as a national instruction set. If China turns to RISC-V, Arm will be rather passive, not as good as earlier. RISC-Vs two founders, JohnL.Hennessy and DavidA.Patterson, are currently working in Google, respectively, as Alphabets chairman and Google researcher. Lin Xiao, a senior researcher at the Chinese Academy of Sciences automation, said Android is Google. If Android decides to support RISC-V, it will be a great blow for Arm. For this view, Han Xiaomin also agreed with Lin Xiaos viewpoint. In fact, Shanghai has already started the business layout of Arm. Since 2015, Arm has opened its incubator, investment management platform and industrial fund in China. In 2015, Beijing an InterSpace Technology Ltd (hereinafter referred to as an innovation space) was established. The ArmAccelerator is the only Arm accelerator in the world, focusing on the innovative service platform of artificial intelligence and the Internet of things industry, according to the official network of the annex accelerator. Anchuang has been working on helping technology driven innovation enterprises to accurately dock ecological resources, investment institutions, sales channels and publicity channels, provide a one-stop accelerated service, help the capital market to butt with the most investment potential innovation team, excavate early quality projects, and help large enterprises look for the innovative type needed. Project, accelerate the project landing, make a real innovation engine; help foreign advanced technology to land in the country, and domestic projects in foreign channels layout, focus on international cooperation and exchange, and promote global innovation. Another shareholder who accounts for 2 of the shares is Shanghai poly information technology partnership (limited partnership). Shanghai has the rest of its shares. The shareholders of Shanghai poly can be traced back to man Kun and Yang Yuxin. Yang Yuxin is vice president of the center, and Yang Yuxin has also been the Asia Pacific mobile computing market manager at Arm, and is responsible for the promotion of the Arm mobile computing market in the Asia Pacific region. Through its wholly-owned Shenzhen Anchuang technology Cci Capital Ltd (hereinafter referred to as Anchuang investment), he invested with Yang Yuxin in Shanghai Anan Information Technology Co., Ltd., and Yang Yuxin then invested with Shanghai Anmu Information Technology Co., Ltd. to invest in the partnership of Shanghai poly information technology (limited partnership). Beijing InterSpace Technology Ltd has invested 17 Companies in the world, including the venture space companies in Beijing, Shanghai, Shenzhen, Nanjing, Chongqing and other places. At the September 2015 meeting of the annex space accelerator, Arms global executive vice president and President of the Greater China, Wu male, evaluated the mission and business model of the accelerator. The accelerator will have diversified flexibility from the business model, focusing on the Arms powerful ecosystem, which can be supported by industrial partners. As one of the commercial sources of the accelerator, it is also flexible to launch the product through equity, product division, and service fees, and also provides a business model for the accelerator itself. The full investment of anchong investment, which is full of Kun Kun, occupies a key role in the investment layout of Anchuang. An investment is in charge of a number of investment platforms, including Shenzhen an equity investment partnership (limited partnership), an equity partnership (limited partnership) (limited partnership) in Meishan bonded port of Ningbo (hereinafter referred to as an established partnership) and a co win investment management partnership in the Meishan bonded port of Ningbo (limited) Partnership (hereinafter referred to as win win win) and Ningbo Meishan bonded port an investment management partnership (limited partnership). Among them, the largest is the growth of an innovative partnership, which is registered in September 4, 2017, and one of the gold owners can be traced back to CKH (China) Group Co., Ltd. (hereinafter referred to as Kaihua real estate). Kaihua real estate invested in an win win through indirect control of Shenzhen Kaiyuan Investment Center (limited partnership). In March 27, 2018, an Chuang win win capital increased to 480 million yuan. Andrew win is one of the sources of financial resources for the growth of the company, but the amount of investment has not yet been made public. An investment platform for Arm also includes executives from China. This platform is Ningbo Meishan bonded port area investment management partnership (limited partnership). According to the information from Tian Tian, the partnership established in March 20, 2018 was basically funded by Arm executives in China. Logic of joint venture Arm Chinas layout does not stop here. In the middle of 2017, it began to seek a joint venture in China and received consultations from the Arm China team. The analyst who did not want to disclose the name said that the other side was hoping to form a deeper cooperation model than general, and also planned to set up a fund company in China to invest in Chinese companies. Two plans in the planning. For the latter, analysts say that there are not many cases of establishing the fund acquiring company through the system, and most of them adopt the direct acquiring company. For the Arm companys proposal to set up a joint-venture company at that time, it was said that it would become one of the channels for China to acquire Arm core technology. In this regard, Han Xiaomin, general manager of the research center of integrated circuit industry in sadi Institute, believes that the possibility of Arm opening the core technology to China is not likely to be open to China on the basis of the position of Arms industrial chain. Lin Xiao, a senior researcher at the Institute of automation of the Chinese Academy of Sciences, also believes that Arm, as an instruction set and a provider of architecture, does not necessarily link the technology with the ability to enhance Chinese chip capabilities through joint ventures. The official website of the Ministry of science and technology of China said that in January 24, 2017, CIC, silk road fund, Temasek, Shenzhen deep industry group, Magnolia investment and Arm co sponsored the official launch of the yuan an innovation fund in Beijing. The article says that the thick innovation fund is managed by the leading semiconductor intellectual property provider Arm and Magnolia investment and settled in Shenzhen. The fund will combine Arms global industrial ecosystem and focus on investing potential technology companies in many key areas, such as mobile Internet, Internet of things, artificial intelligence, etc. In May 14, 2017, Arm signed a memorandum of cooperation with China thick innovation fund in Beijing. It plans to establish a joint venture in Shenzhen. The company intends to build an important domestic IP development and service platform controlled by China. On November 2017, the national development and Reform Commission (NDRC) showed that the State Development and Reform Commission (NDRC) approved the HOPU-ArmInnovationFund project of the Limited by Share Ltd in the Cayman Islands of the Cayman Islands of the Cayman Islands. In accordance with the address of the Shenzhen branch, which is shown on the Arm official network, the Shenzhen city Futian District Center No. four, No. 1-1, Jiali construction square, third 3501 room Room3501, is found after a door marking the company of an electronic technology (Shanghai) Limited company. After the reporter entered the office, a staff member said no interview, you find the wrong place, the reporter found that in the office, there is Qianhai Magnolia science and technology equity investment management (Shenzhen) Limited company sign. In May 3rd, the reporter came to the office address of the Magnolia Investment Management Co., Ltd., located in Financial Street, Beijing. A staff member of the company said the company did not have a website and did not accept media interviews. For this joint venture, Han Xiaomin believes that the deep cooperation based on the underlying technology and talent training, as a systematic project, can help Chinas autonomous controlled server field. This time is different from the original intention of market sales in Sino foreign joint ventures. As for the news that the Arm China joint venture is supposed to be IPO, it coincides with the beginning of the IPO policy of Unicorn in China. From the perspective of capital return, if it is true, the separation of Chinese business will be a great benefit to soft silver and good Arm. Liu Weidong said in an interview with reporters in May 3rd. At present, the share of Arm in the Chinese market has been almost monopolized, and there is no need to expand its market share by establishing a joint venture in China. In July 2016, Japans Softbank Corp announced that it would buy Arm at a price of 24 billion 300 million. Many analysts said that the acquisition of Arm to enter the Internet of things is Sun Zhengyis big bet. The reporter inquired the relevant information to Softbank Corp mail, as of press time, did not get a reply. Softbank Corps mailbox automatically replied that its office was closed from May 2nd to May 6th, and began processing mail in May 7th. For the topic of the joint venture, the public relations company authorized to represent Arm said, the chip shipments of Chinese partners with ArmIP have increased by more than 110 times in 10 years. The Chinese market is not only very large but also unique, and is very different from other parts of the world. In order to allow Arm technology to benefit more Chinese local companies, we need a Chinese partner to develop Arm compatible technologies that can obtain local licenses in the Chinese market. At the same time, Chinese companies are also more inclined to buy technologies that are fully developed by Chinese companies. Therefore, through the establishment of the Arm China joint venture, the Arm based semiconductor intellectual property rights (IP) will be tailored to meet the Chinese domestic ecosystem solutions and provide a broader technical combination for Chinese partners. The demand of the Chinese market. The joint venture is committed to providing localized support for Chinese market and local innovation, expanding market and providing more opportunities. Author: Chen Yifan and Shen Yiran Li Huaqing (original title: deciphering Arm China: the worlds most influential chip company, China layout floats out of the water) this article comes from: Economic Observer responsible editor: Pan Qingqing _NBJS5830 The Chinese market is not only very large but also unique, and is very different from other parts of the world. In order to allow Arm technology to benefit more Chinese local companies, we need a Chinese partner to develop Arm compatible technologies that can obtain local licenses in the Chinese market. At the same time, Chinese companies are also more inclined to buy technologies that are fully developed by Chinese companies. Therefore, through the establishment of the Arm China joint venture, the Arm based semiconductor intellectual property rights (IP) will be tailored to meet the Chinese domestic ecosystem solutions and provide a broader technical combination for Chinese partners. The demand of the Chinese market. The joint venture is committed to providing localized support for Chinese market and local innovation, expanding market and providing more opportunities. Author: Chen Yifan, Shen Yiran and Li Huaqing (original title: declassified Arm China: Chinas layout of the most influential chip companies in the world)