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Qualcomm China joint venture company to close? Huaxintong CEO said that "it is hard to say"

via:博客园     time:2019/4/20 12:31:55     readed:165

Author: Money innocence

Huaxintong, a joint venture between US chip giant Qualcomm and China's Guizhou government, will officially close at the end of this month, and more than 400 technology development teams are waiting for “takeover”. In response to this news, Huaxintong official has not yet responded, but according to the first financial reporter, Huaxin CEO Wang Kai has left. Wang Kai said in reply to the rumors of the failure of Huaxintong by the First Financial Reporter, “It’s hard to say a word”.

Vowed a year to promote the dragon 4800 into a singer

In May last year, Qualcomm also held a special press conference at China International Big Data Industry Expo, announcing technical and financial support for Huaxintong to develop server chips, helping Huaxintong to succeed, and supporting Guizhou Big Data. The industry and the development of China's semiconductor industry have made positive contributions.

At that time, Wang Kai also told the First Financial Reporter: “The current situation is very favorable for Huaxintong. The first chip has been streamed and will be launched in mass production. Qualcomm President Cristiano · Amon also told the First Financial Reporter: “Qualcomm has not withdrawn from the server chip business. As a shareholder of Huaxintong, Qualcomm will continue to be in terms of technical expertise, design capabilities and management. Huaxintong provides important support and assistance to ensure that Huaxintong has sufficient resources and the overall strength of China's integrated circuit industry. ”

Amon also stressed that the cooperation project between Qualcomm and Guizhou Provincial Government has an important position in Qualcomm's business strategy. Globally, the rapid growth of smart connected devices and the development of artificial intelligence have accelerated the expansion of data centers to include edge computing. The server technology market has bright prospects, and China is the fastest growing and most potential market in the field. one.

However, the vows of both sides have been said for less than a year, and the development of Huaxintong will be forced to put on a rest. The industry has used the “same bed dream” to describe the cooperation between the two companies.

Founded in 2016, Huaxintong mainly serves the design and development of server chips. As of August last year, Qualcomm and the Guizhou government invested a total of 570 million US dollars in this project. On November 27 last year, Huaxintong announced that its first commercial ARM architecture domestic general-purpose server chip & mdash; — Thang Long 4800 (StarDragon 4800) officially began mass production, the first shipments of thousands of.

After three years of establishment, it was the end. Huaxintong’s “death” was surprising. However, market participants have long had doubts about this project, especially after Qualcomm announced on the server chip last year, “Retreat”. . Since 95% of the server chip market is now occupied by Intel X86, it is beyond the reach of other participants.

An ARM executive told the First Financial reporter: “When Qualcomm announced that it was not a server chip, the joint venture project was destined to perish. Qualcomm's exit is also due to internal management decisions, and they believe that cloud computing, especially edge computing, has a greater market potential. ”

Ringing the alarm for domestic chip joint ventures

The failure of this project has also sounded the alarm for other companies in the domestic chip industry. Research Institute Gartner Vice President of Research Sheng Linghai told the First Financial Reporter: “The key issue of the Huaxintong project is that the return on investment is not good, and because it is the equity of both China and the United States, who will pay? Who is out of technology? Who is holding? The joint venture company will face these complicated problems. ”

In fact, Huaxintong is not the only joint venture company of Qualcomm in China. In May of last year, Qualcomm was approved to jointly establish a joint venture company, Shengsheng Technology (Guizhou) Co., Ltd., a state-owned Datang Telecom subsidiary, Lianxin Technology, Jianguang Asset Management Co., Ltd. and Zhilu Capital. Nearly 3 billion yuan, of which Qualcomm and Lianxin Technology accounted for 24%.

Shenglinghai said that the prospects of Qualcomm and Datang joint ventures may also cast a shadow over this. Previously, some media have questioned that Yusheng Technology Wisdom has become an agent of Qualcomm and plays the role of Qualcomm's low-end chip distributor. Qualcomm will not transfer its core technology to the joint venture company.

Who is the intellectual property in his hands? Perhaps it is "China Core Pass" & rdquo; the biggest pain point. Although Chinese capital is indeed in a dominant position in terms of registered capital, the dominant position of the joint venture company is still in the hands of Qualcomm, because most foreign technology companies only provide technical authorization to the domestic rather than intellectual property transfer. This means that the joint venture can only use technology, but not the technology.

There is no shortage of joint venture companies in the chip industry. Intel and domestic companies have cooperated with technology, and X86 CPU technology is still in the hands of Intel. ARM's cooperation with China has also been in existence for a long time, including the opening of China's funds and incubators, and the establishment of joint ventures with China's Hou'an Innovation Fund, but the real patent rights are still in the hands of the parent company ARM.

After the failure of the Huaxintong project, Qualcomm’s ambitions in the data center may also be suppressed. Last year, Amon described his plan for data centers in the first financial journalists. He said: “The first thing we did was to rely on Huaxintong, a joint venture with the Guizhou government, to develop the data center business. The second step was to continue to develop technology and support deep learning through support for Huaxintong. And the need for artificial intelligence to extend the data center's business to the edge computing domain of mobile networks. ”

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