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Alibaba Group Holding Limited (NYSE: BABA) lost access to some of the most advanced chip designs since the British chip designer Arm Ltd Accepted US and UK chip ban against China.
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Softbank Group Corp The (OTC: SFTBF) (OTC: SFTBY)-owned chipmaker concluded that countries will not allow sales of its latest Neoverse V series because of its high performance, the Financial Times reported.
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The move will affect Alibaba’s T-head chip unit and other Chinese groups.
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Neoverse V falls under Wassenaar, a multilateral system to prevent diversion of dual-use technology for military use. But Arm will need a US and UK export license to sell the technology.
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Arm, headquartered in the UK but with significant operations in the US, is seen as vulnerable to sanctions against China. Like tech companies around the world, Chinese companies rely heavily on Arm’s designs to make devices ranging from smartphones to servers.
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A T-head engineer at Alibaba said the US sanctions created a two-tier system. Amazon.com Inc (NASDAQ: AMZN) Amazon Web Services 2021 released Neoverse V for its advanced cloud computing chip.
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China and the US The tension between them forced some Chinese chip companies to look for an increasingly sophisticated open-source alternative to the Arm’s design called Risk-V.
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Over the past year, Arm released several new core designs, including the Neoverse N2 and Neoverse V1 and V2, the latter of which are the highest-performing cores ever, with designs originating in the US.
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US and UK export controls linked to technologies listed under Wassenaar blocked Chinese companies from buying the Neoverse V2 and its predecessor, the V1.
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Arm is said to have worked with Alibaba and other Chinese partners to resolve the chip supply issue while complying with the latest export controls.
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Photo: Body Stock and Dragon Claw via Shutterstock
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