At the beginning of May, the media exposed the joint venture of the ARM in China, Anyou Technology (China) Co., Ltd. (referred to as China) to “formally start operations”. Three weeks later, Anmou China signed a contract with Chengdu Tianfu New District Chengdu Management Committee. ARM IC design service platform, ARM China West R&D Center, Education R&D Headquarters and ARM Smart Town will be built in Tianfu New District.
When the “chip crisis” was rampant, the deep cooperation between ARM and China caused great concern. Some people think that such cooperation has caused the domestic chip industry to receive the “Olive Branch”, and some people worry that the joint venture does not mean that ARM exports core technology to China. So, how does ARM enter China’s domestic market? On May 19th, the “2018 Global Unicorn Enterprise Summit Forum” was held in Chengdu. Liu Runguo, vice president of sales for ARM China, responded by asking questions: “We all Already (established) a joint venture (company), the Chinese side is a major shareholder. Do you think this attitude is enough?” As for the two aspects of targeting the market and output technology, Liu Runguo said that ARM “has”.
Create an integrated circuit industry ecosystem
As a semiconductor chip intellectual property provider, ARM has been established for nearly 27 years. In the mobile phone market, ARM’s CPU acquisition rate has reached 50%. At present, mobile chip manufacturers including Huawei, Qualcomm and MediaTek are adopting the ARM chip architecture. With the license chip design scheme to collect the license fee, the market valuation of ARM in 2016 is about 32 billion US dollars.
“Technology is fundamental. Without this, we are very difficult to survive in the high-tech industry.” Liu Runguo first emphasized the technology of ARM.
The long-term development of technology depends on the construction of industrial ecology. Liu Runguo mentioned that for ARM and ARM China, “ecology” means thousands of software, hardware, middleware, operating systems, and various solution vendors and design tool vendors, together with ARM. A very large high-tech ecosystem.
Recently, the company has settled its investment project in Tianfu New District. When ARM’s upstream and downstream gather in Chengdu, it will comprehensively enhance the ecosystem environment of the integrated circuit industry, and help Chengdu and even China’s integrated circuit industry to deeply integrate into the global industrial chain. Wu Xiong, Chairman and CEO of ARM China, once said that he is very optimistic about the economic, social and industrial development prospects of Chengdu. Tianfu New District is striving to build a new growth pole, building an inland open economy highland, and providing good products for high-tech companies such as ARM. Investment development environment.
30 trillion market spawns unicorn
Liu Runguo predicted: “In the next four years, the global shipments of ARM-licensed chips will reach 100 billion, which is the total shipments in the past 26 years.”
We value the prospects of the Chinese market and hope to arrange it early. In May of this year, ARM, which has been in China for many years, suddenly announced a new joint venture, and China Capital is a 51% controlling shareholder.
In the era of Internet of Everything, technology companies will also usher in a new wave of growth opportunities. Liu Runguo said that data shows that the Internet of Things under the Internet of Everything will be a 30 trillion market, and the Chinese market is estimated to be divided into one third. “If there are 1 trillion objects connected to each other, a company earns 1 yuan per node, which is one trillion yuan.” Liu Runguo said, “From a valuation point of view, such a company has already And the current Google, Apple, a volume, is definitely a unicorn.”
Undoubtedly, the huge market brought about by the Internet of Everything will be a good opportunity to promote Chinese unicorn enterprises. Liu Runguo mentioned: “Whether it is for high-tech enterprises such as ARM, plotting China or innovating and starting a business, they should seize it.”