Will Qualcomm and ARM's two major chip giants enter China and promote the development of domestic chips? In fact, it is not the meaning of a drunkard

[Qualcomm and ARM's two major chip giants have entered China to promote the development of domestic chips? In fact, it was the ulterior motives of the drunkard. After the ZTE incident last month, the short boards of domestic chips were also infinitely enlarged. It was precisely at this time that ARM established a new company in China in a joint venture with Chinese investors. A few days later, foreign media reported that Qualcomm and China Datang have also established a joint venture model to establish Shengsheng Technology. In the future, the main business of the company is to develop low-end and middle-end chips used in mobile devices. Two big chip giants have set up new companies in China. It will inevitably cause many netizens to wonder if it will indirectly drive the development of domestic chips.

It may be said that everyone will find ARM very strange, although ARM does not produce chips, but its design and development framework is still at the leading level in the world. Qualcomm, MediaTek and Huawei's Kirin chips all need to purchase frameworks from ARM. And whether it is Apple's iOS, or Google's Android must be based on the ARM framework before they can run. And when it comes to this Shengsheng technology company, it is also a great success. This Haosheng Technology was established in 2015. The equity component consists of Qualcomm, Datang Telecom, Lianxin Technology, Jianguang Assets, and Zhilu Capital. So why did Qualcomm and ARM infiltrate into China soon after the ZTE incident and established a company in China through a joint venture? Will Qualcomm and ARM's two major chip giants promote domestically produced chips?

First of all, talk about Qualcomm, Qualcomm's own interests, Qualcomm chip compared to domestic chips such as MediaTek, Huawei Unicorn, etc., win over performance in the price. If Qualcomm enters the Chinese market and designs production sites, the cost of Qualcomm chips will inevitably drop significantly, and naturally it will further curb the development of domestic chips.

Secondly, a number of media organizations have analyzed Qualcomm’s entry into the Chinese market. It is generally believed that the disadvantages outweigh the benefits. Because Qualcomm does not bring the core patented technology of high-end chips, this cooperation is mainly for the development of low-end chips. Although the performance of domestic chips does not reach the high-end level, it is the most promising in low-end chips. It is also nothing less than the series of millet millet, and Huawei's Kirin series. Qualcomm's focus on this cooperation in the low-end chip, is likely to target the domestic low-end chips, to the maximum extent possible to curb the development of domestic chips. Qualcomm firmly holds high-end chip technology in its own hands, and at the same time suppressing domestic chips with medium and low-end chips. Therefore, Qualcomm will not promote the development of domestic chips, and it can be said that it is not the intention of the slut.

ARM is different from Qualcomm in terms of operating mode. Although ARM has a large number of patented chip technologies in the future, it does not rely on manufacturing or selling chips to make profits. Only responsible for research and development, after the completion of the framework will be sold to companies such as Qualcomm, MediaTek and other manufacturing chips, to receive patent licensing fees. This time, the ARM established a new company in China through a joint venture. First of all, it is optimistic about the prospects for the development of the Chinese market. You know, 25% of ARM's revenue comes from the Chinese market. While ARM established a joint venture company in China, it is very likely that it wants to establish a production line and use its own chip core patented technology to produce chips to maximize its benefits.

Whether it is Qualcomm or ARM, the intention of setting up a new company in the country is the same. While improving their own revenue while suppressing domestically produced chips, why not? Therefore, it is clearly impractical for Qualcomm and ARM to promote the development of domestic chips. For domestic chips to achieve breakthrough development, we must first get rid of the dependence on “foreign aid” and start from ourselves is the most reliable!

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