[Is there money or money? Why does Softbank sell 51% of ARM China's shares? 】 For Softbank and ARM, the perception of the domestic market is very strong, especially the dependence of the Chinese mobile phone market on ARM is also very strong. Recently, Softbank Group announced that its chip maker ARM will sell its 51% stake in its Chinese subsidiary to Chinese investors for US$775 million. Softbank said that ARM will sell a 51% stake in China’s subsidiary “ARM China†to a consortium in China. The consortium will consist of financial investors and ARM partners.
As we all know, the rise of ARM is still a kind of "replacement" for technological innovation. Because of the change of its architecture, the development of smart phones has entered a new era. When China's mobile phone companies and even China's manufacturing industries are affected by trade frictions between China and the United States, we have devoted too much attention to the development of the technology and the development of the chip. Now, if Softbank sells its shares in ARM China, it will not bring an extension of technology or Landing it? I believe many people care about this. So will Softbank meet this kind of forecast and demand in the market?
Softbank said in a statement that the deal will help ARM find more business opportunities in the Chinese market. Softbank said: "ARM believes that the joint venture will help ARM expand business opportunities in China." The joint venture company will license semiconductor technology to Chinese companies and develop ARM technology in China. Obviously, Softbank first thinks of business opportunities. As for the authorization of semiconductor technology, it is still difficult to say whether the landing of the Chinese market will bring about technological migration. After all, Softbank said that ARM will continue to obtain a large percentage of licenses, copyrights, software and services from ARM China.
Softbank said that about 95% of all advanced chips designed in China last year were based on ARM technology, and Chinese companies contributed 20% of ARM's total sales. The application of ARM technology in the Chinese market is very large, and the return of the Chinese market to ARM is also huge, and contributes one-fifth of sales to the source of real money. Softbank China will be responsible for all licensing and royalties between ARM and China partners. To put it plainly, Softbank still came to make money. There is also news that the ARM China joint venture company plans to carry out IPO in China and will soon land on the domestic A share market this year. Of course, this may be a little bit more thought. Although the CDM gate of China's capital market will be more and more open, there will be more and more unicorn enterprises "landing" the capital market, but ARM China wants to land on the Chinese capital market so fast that it is almost impossible.
Two years ago, Softbank bought British chip designer ARM for 24.3 billion pounds (32 billion U.S. dollars). After that, it signed an agreement to sell 25% of the latter's shares to the Saudi-backed vision fund. Obviously, Softbank has always hoped that it can use ARM. Get more rewards. In fact, ARM is also facing certain pressure in China. Especially with the release of the 2025 manufacturing plan, China encourages the development of private companies and actively advocates that domestic companies can invent their own core technologies to replace core technologies from abroad. In particular, the shock brought about by the ZTE incident is to let the relevant departments pay more attention to their own core technologies.
The social demand of semiconductor technology, as well as its irreplaceable role in scientific and technological advancement, will inevitably make it a pillar of pillars that are insurmountable. In fact, in the 2025 manufacturing plan, semiconductor technology also occupies a very important position. According to McKinsey, China accounts for 45% of global demand for integrated circuits, but imports account for 90% of its purchases. According to statistics, at present, the national funds that support the development of the domestic chip industry have raised 300 billion yuan (US$47.4 billion). This is undoubtedly a development pressure for ARM. Especially when Chinese companies began to “keep their enthusiasm†in developing ARM-designed open source alternatives, ARM actually cares and is “quietly†nervous.
We can simply think that ARM China's sale of shares to the Chinese consortium can be considered as "it can be part of the "Made in China 2025" plan." After all, joint ventures can also be seen as domestic companies, especially when Chinese capital holds a controlling position. time. However, we are concerned about the landing of technology. Actually, the U.S. government also cares about this. In fact, the U.S. government has raised concerns that they are concerned about the risk of foreign companies’ intellectual property being exposed to Chinese competitors in joint venture companies. However, for Softbank, it is clear that ARM China will not have this concern, because ARM China's main development direction is all licenses, royalties, software and services generated for semiconductor products. There is no transfer of technology.
We are also concerned that ARM stated that “the Chinese market is not only very large, but also unique and different from the rest of the world. In order to allow ARM technology to benefit more Chinese companies, we need a Chinese partner to develop In the Chinese market, local licensed ARM compatible technologies are acquired, and Chinese companies are more inclined to purchase technologies developed by Chinese companies, so the establishment of an ARM China joint venture will be tailored to ARM-based semiconductor intellectual property (IP). Customized solutions to meet China's domestic ecosystems and provide Chinese partners with a broader technology portfolio to meet the needs of the Chinese market.â€
Some people think that ARM holds the core technology of chip development. Although the joint venture company cannot fundamentally solve the status quo of China's chip development, including mastering core technologies, it can guarantee the supply of the Chinese chip market in a short period of time and win time for Chinese companies to develop chips. As for Softbank, why did ARM have such a layout in China? The main sight is the huge Chinese market. It is predicted that the Chinese market is likely to become the largest ARM market within five years. Therefore, losing the Chinese market is the loss of the future. The US's chip sanctions have just given ARM an opportunity to expand rapidly. “Landing†on the Chinese market can be supported by the Chinese government on the one hand, and it can also grab more market share on the other. Plainly speaking, ARM China still comes to “circle moneyâ€.
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