ARM is Not Sending its New Chips to Alibaba Amid US, UK Export Controls

The US remains stern in restricting Chinese chipmakers from operating in the country. Chip imports to China are not allowed, and that’s why some companies are forced to look for other alternatives that could make that work.

According to the latest report by Engadget, UK-based semiconductor giant ARM won’t be selling the Neoverse V series chips to Alibaba amid the ongoing US policies.

Additionally, the UK government has not given the green light for the Chinese brand to export the semiconductors. The US believes that the exports from China and Russia will only be used for military purposes.

ARM Won’t Sell its Advanced Chips to China

(Photo : Yogesh Puyal from Unsplash)
Unfortunately, ARM’s newest chip design won’t be used by Alibaba after the two governments revoked the export licenses for it.

One of the most recent chip designs from ARM is said to be a high-performance semiconductor. The Neoverse V is slated to be delivered to China, according to sources familiar with the matter. However, the company refrained from marketing the product because the US policies did not sit well with China.

ARM is popularly known as a chip-making giant in the industry. From producing the best chips for wearables like smartwatches to the world’s fastest supercomputers, the company is consistent in bringing the most economical designs to Samsung and other manufacturers.

Engadget reports that the Neoverse V2 reportedly comes from the US. Its excellent design and performance are what the companies seek the most.

In another report by The Guardian, ARM says that “global uncertainty” remains another problem that the company faces at present. Although IPO preparations are already on the way, the company is expected to delay the listing until late 2023.

Related Article: India, Vietnam Might Be More Efficient Alternative Chipmakers Outside China Amid US Chip Curb

US Places YMTC on ‘Unverified’ Entity List

The Biden administration intensifies its campaign against China and continues to bar the country from buying the best chips in the world.

According to an article from The Financial Times, the US government decided to place YMTC, another China-based chipmaker, on an entity list.

The administration clarified that the company received a sanction because it violated export controls. The US found out that YMTC is still supplying NAND memory chips to Huawei, a smartphone giant in China.

Because of this, the US gives YMTC 60 days to comply with the request, or else it will be permanently put on the entity list. If that happens, the company’s ability to export will be restricted like any other Chinese firm.

The tech export controls were traced back as early as October. At that time, the US wanted China to stop acquiring US-made chips because they would only be used for military modernization.

As far as geopolitical issues are concerned, the US and China do not only compete in the chip-making business. The two countries are also vying to be the world’s most dominant military forces on the planet.

Read Also: Arm-Based Chips Are In High Demand In The Server Market

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