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ARM increases revenue from 64-bit chips

In total, ARM licensees supplied 2.9 billion chips based on their processors, an 11 percent year-on-year increase. The company achieved significant growth in both business networking and microcontrollers, which grew 150 percent and 40 percent, respectively.

The leader in sales of chips for smartphones is expanding its interests to other areas, which has raised its profits during the first quarter of the year, reaching 78 million pounds, 16.2 above the previous year. Its billing grew 10 percent in that period.

The company has two main revenue streams, licensing its designs to companies like Broadcom, Marvell, and Qualcomm, which pay for the right to make both pre-defined and custom chips, from its processors, and then typically pay it a royalty. additional for each chip.

Its licensing revenue increased 37 percent to $ 129.9 million (the company offers results in pounds and dollars interchangeably), and royalty revenue grew just 3 percent to $ 144.5 million.

The company’s modest royalty numbers had raised some concern in the market about the possibility that customers were opting for low-cost smartphone chips, and that this would create a domino effect that could in turn affect to ARM benefits.

Although it seems that this trend is true and is confirmed by the manufacturer’s own managers, it is also emphasized that of the six licenses that the company sold in the last quarter, five were A-series chips, aimed at the highest-end models.

But perhaps the most relevant thing about ARM today are its 64-bit chips, the ARMv8-A, for which it has already begun to receive royalty income since they began to be distributed in volume, which is an important step for its line of high performance processors.

In total, ARM has already signed about 30 licenses for its V8 architecture, which will soon begin mass production, which will drive the 64-bit transition in the phone and tablet market, similar to how produced on PCs a few years ago.

It’s news from the IDG News Service. Mark Hachman, PCWorld