Report: China ARM server chip company to close

April 23, 2019 //By Peter Clarke
Report: China ARM server chip company to close
A joint venture between Qualcomm Inc. and the rural province of Guizhou in China will close by the end of the month, according to The Information which cited employees at the venture as its source.

Huaxintong Semiconductor was formed in 2016, with a remit to make server chips based on ARM processor architecture. Qualcomm and the Guizhou had invested $570 million in total, as of August 2018.

Qualcomm's investment in the venture seemed to come about in part to appease Chinese authorities who in February 2015 imposed a $975 million fine and a royalty rate cut of a third for Chinese handset vendors (see China deal squeezes royalty cuts from Qualcomm ). But the failure also exposes how some Chinese authorities in their desire to develop technology hubs can struggle to execute their plans.

Related links and articles:

China deal squeezes royalty cuts from Qualcomm

Chinese firm takes ARM license to attack server market

European server project promotes ARM on FDSOI


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