Zhong Lun advised Arm, the UK Chip Giant, on the establishment of a joint venture for Arm’s semiconductor technology in China
The sale by the UK chip giant Arm Limited of a 51% stake in its Chinese subsidiary, Arm Technology (China) Co., Ltd. (“Arm China”), to entities representing certain financial investors and certain of Arm's ecosystem partners in order to form a joint venture for Arm's existing semiconductor technology IP business in China was recently closed.
The transaction values Arm China at US$1.52 billion. The joint venture, which will license Arm semiconductor technology to Chinese companies and locally develop Arm technology in China, is expected to expand Arm's opportunities in the Chinese market. Arm will continue to receive a significant proportion of all licence, royalty, software and services revenues arising from Arm China's licensing of Arm semiconductor products.
Zhong Lun, acting as the PRC counsel for Arm, advised on the Chinese law aspects of the transaction. The Zhong Lun team was led by corporate partner Steven Huang, with team members including non-equity partner Summer Xia, Sunny Xu, Yvette Chu and Alexandra Chen. Zhong Lun partner Scott Yu and Jihong Chen and their teams provided anti-trust and IP support for the transaction.