For the first time, Arm's high-end chip has become a second-class person to Ali engineers who have interrupted the goods

2022-12-14T07:21:29.292Z

[Financial Channel/Comprehensive Report] Chinese tech giant Alibaba is unable to buy some of Arm's most advanced chips after it determined that the US and UK governments would not approve the company's license to export technology to China design. This is another big blow to Chinese companies, affecting Alibaba

Arm Holdings believes that the United States and the United Kingdom will not approve the sale of its latest Neoverse V series because the product performance is too high, so it has decided not to export the most advanced design to China.

(Bloomberg)

It was another blow to Chinese companies, affecting Alibaba's chip unit and other Chinese conglomerates.

The US and UK governments will not approve ARM's decision not to supply Alibaba

Please read on...

Arm Holdings, owned by Japanese tech investor SoftBank, believes the U.S. and U.K. will not approve sales of its latest Neoverse V series because the products are too high-performance to export their most advanced designs, according to people familiar with the sales process. To China, this is the first time.

Neoverse V is part of Wassenaar, a 42-nation multilateral agreement aimed at preventing the diversion of dual-use technology for military use, and Arm needs export licenses from the United States and the United Kingdom to sell the technology.

The multilateral export control agreement was formed in 1996 by more than 40 countries, including the UK, US and EU member states, to restrict the sale of weapons and products that may have dual military purposes.

Like technology companies around the world, Chinese companies rely heavily on Arm's designs to build devices from smartphones to servers.

Arm's intellectual property underpins most of the world's chip industry and is used by most companies developing advanced technologies.

"Even if we have money, they won't sell us good products. We feel that the Western world treats us as second-class people," said a senior Alibaba engineer.

The United States has announced strict export controls to prevent China from obtaining advanced chips or the technology and equipment to manufacture advanced semiconductors domestically.

While Arm could apply for a license to sell the technology, the chances of success are very low given the U.S. strategy of rejecting Chinese technology that may have military applications.

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For the first time, Arm's high-end chip has become a second-class person to Ali engineers who have interrupted the goods