Semiconductor design company Arm expects its latest v9 architecture to be potentially licensed to Huawei Technologies Co, as the latest chip innovation is of British origin and not subject to US export regulations.
That would be a welcome development for Huawei, whose advanced chips are designed by semiconductor unit HiSilicon, amid its struggles to cope with tightened US trade sanctions that have restricted its access to sophisticated chips of American origin.
“Following a comprehensive review, Arm has determined that its Arm v9 architecture is not subject to the US Export Administration Regulations,” said Ian Smythe, vice-president of solutions marketing at the British firm, during a media event in Beijing on Wednesday. He said Arm has communicated its review to the appropriate US government agencies.
Arm sells processor designs and licenses an instruction set – code that controls semiconductors – to companies such as Apple, Samsung Electronics and Qualcomm. Arm’s technology is pervasive in the smartphone industry and is gaining a foothold in other markets such as personal computers and servers.
The v9 architecture, which was launched by Arm on Tuesday in the UK, could be licensed to Huawei’s HiSilicon unit because it is not covered by US regulations, an Arm spokeswoman said on the sidelines of the Beijing event on Wednesday. Whether Huawei has moved to license the company’s v9 architecture is not known, she said.
A child looks at chips designed for 5G base stations by HiSilicon, the semiconductor unit of Huawei Technologies Co, on display at the China International Big Data Industry Expo 2019 in Guiyang, in southwest China’s Guizhou province. Photo: Xinhua.
Shenzhen-based Huawei did not immediately respond to a request for comment on Wednesday.
That development could provide a much-needed respite for Huawei, which was put on Washington’s trade blacklist in 2019. The company has struggled under the US sanction, which has restricted its ability to buy hardware, software and services from American suppliers without approval from Washington.
After Huawei was blacklisted, Arm complied with the US sanction by halting its business with the Chinese firm. The findings from Arm’s comprehensive review could potentially help Huawei repair its disrupted supply chain operations.
In a recent internal meeting, Huawei founder and chief executive Ren Zhengfei said the company must try to use “third-class” components to manufacture “first-class” products amid stifling US trade restrictions.
The smartphone operations of Huawei, the world’s largest telecommunications equipment maker, have been adversely affected by the restrictions, which cut its access to high-end semiconductors and led to its decision last November to sell its Honor budget handset business.
For Arm, its v9 architecture represents the biggest overhaul of its technology in almost a decade, with new designs targeting markets currently dominated by Intel Corp, the world’s largest semiconductor manufacturer.
The Cambridge, UK-based company is adding capabilities to help chips handle machine learning, a powerful subset of artificial intelligence (AI) technology. Extra security features will lock down data and computer code more.
The new blueprints should also deliver 30 per cent performance increases over the next two generations of processors for mobile devices and data centre servers, according to Arm, which is being acquired by Nvidia Corp.
The upgrades are needed to support the spread of advanced computing capabilities beyond smartphones, personal computers and servers, Arm said. Thousands of devices and appliances are being connected to the internet and gaining new capabilities through the addition of more chips and AI-powered software and services. Arm wants its technology to be just as ubiquitous in those products as it is in smartphones.
Simon Segars, chief executive of British chip designer Arm, expects the company to take on semiconductor giant Intel Corp. Photo: Reuters
“As we look toward a future that will be defined by AI, we must lay a foundation of leading-edge compute that will be ready to address the unique challenges to come,” said Simon Segars, chief executive of Arm.
Intel dominates the markets for personal computer and server processors. But that grip is slipping as customers such as Amazon.com increasingly design their own chips using Arm technology. With the launch of its v9 architecture, Arm is trying to cement its current position, while giving customers tools to compete better with Intel.
Chinese technology companies, including Huawei, have expressed strong concerns to local regulators about Nvidia’s proposed acquisition of Arm, according to a Bloomberg report in October, citing people familiar with the matter.
Chief among their concerns is that Nvidia may force the British firm to cut off Chinese clients, they said, asking not to be identified discussing private deliberations. It is feared that Arm will become yet another pawn in the struggle for tech supremacy between the US and China.
