ARM Fortunes Soar As Intel Struggles To Keep Up

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Chip maker royalty revenues to soar on back of smartphone revolution.

ARM who designed many of the multicore processors in Smartphones are laughing all the way to the bank as royalties stack up for the chipmaker as more and more consumers snap up phones containing their multicore processors. 

And Smartphones are becoming a nice little earner, says CEO Warren East. 

“As they have more functionality, we are giving more value to our customers, and we expect to be paid more,” AMD Chief Warren East told Reuters in an interview at the Mobile World Congress in Barcelona.  

“We are not surprised by the speed of the roll-out.” 

ARM is currently taking a leading slot in the smartphone processor market with the backing of Windows as well as chip developers like NVIDIA and Qualcomm who use ARM architecture on their own chips, which are now used in 95% of LTE baseband designs world-wide.

ARM chips run on a slew of phones many of which were launched in Barcelona this week including LG Optimus 3D and Samsung’s Galaxy SII, which run on their dual-core Cortex chips, according to Reuters.  

They also feature in a range of new tablets and notebooks coming on-stream this year from the likes of Dell, Acer and Toshiba and in other electronic devices including toys to running machines, which contain their microcontrollers. 

Cambridge based ARM receives 2 percent of the selling price of every device containing its designs and also earns a licencing fee from each company.

The chipmaker also yesterday welcomed the acceleration of LTE / 4G technologies that will provide consumers with improved mobile experience and also launched their next generation Cortex-R5 and Cortex-R7 processors.

They are also confident of beating off rivals Intel, who to date have failed to make gains . 

 

“(Intel) is still a long way apart in processors on the market,” he said. 

“Unless they can make their processors smaller they will struggle.”

Earlier this month East’s company launched their Fusion technology to Australia which they claims is faster, delivers superior power management than what Intel has on offer. 

In terms of the Microsoft and Nokia collaboration, East thinks it is largely a good thing. 

“It’s good to see them with a strong direction,” he said. 

“For us it’s a broadly positive thing.”

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