Beijing's latest tech ally in US clampdown: Arm China

Since SoftBank sold control, venture doubles staff and develops cryptographic IP

20191203 ARM China

Arm China has become a central part of Beijing’s quest for tech self-sufficiency in the face of rising American hostility. (Nikkei montage/Source photos by AP)

CHENG TING-FANG, Nikkei staff writer

TAIPEI -- Arm China, the Chinese subsidiary of the British chip company owned by Japan's SoftBank, has become a key player in Beijing's quest for tech self-sufficiency and, in a move likely to alarm the U.S., has developed codes that enable Chinese semiconductors to run state-approved cryptographic algorithms, the Nikkei Asian Review has learned.

Huawei, the Chinese telecom gear maker that Washington has accused of spying, is among the company's biggest customers after Arm China took over the Chinese business of its larger U.K parent last year.

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