ARM Holdings, which designs microprocessors for cell phones and networking equipment, has signed a manufacturing agreement and technology licensing agreement with China?s Semiconductor Manufacturing International Corporation (SMIC). The agreement will allow SMIC to manufacture some of the more popular ARM chips for the Chinese market. SMIC is the largest foundry in China, and it makes chips for both local companies and multinationals.
Like other chip companies, ARM has been set on increasing its size in China. The company opened an office last year in Shanghai, where China?s semiconductor industry is based, and has forged links with universities such as Southeast University in Nanjing.