Arm prototype processor raises business model questions

Find the Latest SoC Solutions
for... Automotive... IoT... Security... Audio... Video

Processor IP licensor Arm Ltd. is working on a major processor development that it will take to prototype stage, according to the Financial Times, referencing unnamed sources.

www.eenewsanalog.com/, Apr. 24, 2023 – 

This has led to some people to question whether Arm will change its business model to compete with customers. Since its formation in 1990 Arm has always stressed it would never compete with its customers. It's business model has been to design processor cores and then license those designs – and the architecture behind it – to fabbed and fabless chip companies.

The FT states design project is the largest ever undertaken by Arm and the engineering team is being led by Kevork Kechichian. He has held previous roles at chipmakers NXP Semiconductors and Qualcomm. The project has been underway for about six months and will demonstrate the architecture's capabilities for a next generation of mobile devices and laptop computers.

It was not stated what manufacturing process node the processor design is being aimed at but it is expected that Arm will be working with one or more of the leading foundries; TSMC, Samsung and Intel.

No plans....yet

Arm has made prototypes and test circuits before. It helps foundries prove their next generation manufacturing processes and gives Arm and its licensees confidence that processors designed to the Arm architecture will yield well in that process. The FT reported that sources close to Arm insist that the company has no plans to sell or even license the processor prototype.

Nonetheless some observers point out that Arm is serving a diminishing pool of advanced chip companies. It has come under pressure to change business practices and improve profitability on behalf of its owner SoftBank Group. SoftBank is desperate to raise money via an IPO of Arm shares on the NASDAQ market later this year. If the prototype is sufficiently advanced in performance Arm could be tempted to take it to market itself and make the jump to becoming a fabless chip company itself.

click here to read more...

 Back