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Trade war

China rushes to absorb Arm's tech before tensions with US rise

Cultivation of chip industry is pillar of Beijing's manufacturing sector update

Samsung's chip plant in China. The country's demand for semiconductors is soaring, making it an attractive place for chipmakers to set up shop.

TAIPEI/HONG KONG -- British chip designer Arm Holdings' move to cede control of Chinese operations to a local joint venture is part of Beijing's efforts to quickly acquire advanced semiconductor technologies while keeping its guard up against interference by the U.S.

Nikkei learned Tuesday that the local joint venture took over licensing and royalties operations with Chinese partners by the end of April. Chinese investors like the state-owned Bank of China and search engine operator Baidu own 51% of the joint venture, giving Beijing access to Arm technology. The British chip designer controls the remaining 49%.

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