Alibaba (NYSE:BABA)
According to reports, Alibaba (NYSE:BABA) cannot purchase some of the most cutting-edge chip designs from the British semiconductor design business Arm. Arm realized that the United States and Britain would disapprove of the technology being exported to China. Due to this, Alibaba stock declined in the market.
Arm, controlled by the Japanese tech firm SoftBank Group (OTCPK: SFTBY), has never before made a choice of this kind.
According to the Financial Times, which cited persons with knowledge of the situation, Arm concluded that its newest data center chip technology, the Neoverse V series, had too high of performance. As a result, neither nation would accept the sale of the technology.
Wednesday’s premarket trade for Alibaba stock revealed minimal movement from the previous day.
Companies that produce DRAM chips with a thickness of fewer than 18 nanometers, NAND chips with a thickness of more than 128 layers, or logic chips with a thickness of fewer than 14 nanometers will be subject to a “presumption of denial” standard and will be required to submit an application for a license if they are seeking verification to sell their products in China. These new rules were published in October by the Department of Commerce.
The action was made to prevent the progress of China’s semiconductor sector from being hindered by the use of sophisticated tools to develop possible military applications.
In addition, on Tuesday, Bloomberg reported that the Chinese semiconductor business Yangtze Memory Technologies, along with thirty-five other Chinese companies, would be put on a trade blacklist that would prevent them from purchasing specific components created in the United States.
In the last few months, there has been heightened attention on China’s semiconductor sector, namely Yangtze Memory Technologies. This comes after politicians from the Republican Party warned Apple (AAPL) to refrain from using the company’s memory chips in its iPhones.
Reportedly in October, SoftBank (OTCPK: SFTBY) proposed a long-term partnership between the South Korean technology company Samsung and Arm, which will be listed in an initial public offering in the near future (OTCPK:SSNLF).
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Author Shariq Khan 
