Arm plans to increase the licensing fee and increase the chip cost by more than
2020-09-20
According to Reuters, sales representatives at arm, a semiconductor technology provider, have asked for a price increase, which will quadruple chip costs for many Internet of things manufacturers. According to some people familiar with the matter, the price hike has prompted some licensors to consider alternatives to arm.
 
As the world's leading semiconductor intellectual property (IP) provider, arm holdings is at the core of the global digital electronic products. As the bottom provider of chip architecture, the chip based on ARM technology has the characteristics of high performance, low cost and energy consumption, and its shipment volume is also second to none in the world.


The picture comes from "the world of Electronic Engineering"

Before the 1990s, the performance of arm company was flat, and the shipment of processor had been stagnant. Due to the shortage of funds, arm company made a far-reaching decision. Instead of manufacturing chips, arm only authorized the chip design scheme to other companies for production. It was because of this decision that chips using the underlying architecture of ARN company were blooming everywhere, leaving Intel company with closed design far behind.
 
Arm provides chip IP licensing for most smartphones in the world, including apple, Samsung, Nintendo and Sony. ARM is also considering expanding the chip market of autopilot and network technology. Just last month, Apple announced that it would replace Intel processors in MACS with custom chips based on ARM technology.
 
Some analysts believe that arm's price increase may be related to the recent partial or full sale of arm by Softbank group.
 
Softbank acquired Cambridge based arm for $32 billion in 2016, the largest acquisition in its history. Its chief operating officer said: Softbank has realized most of the value of this "chip company". Arm will be listed again in the future, but will implement this decision after the century matures.
 
As Softbank's vision fund has been hit hard by investments in Uber Technologies Inc and Wework, Softbank has hired Goldman Sachs to explore alternatives, including the sale of arm in whole or in part. Some outside media believe that this is the main reason for the price increase of arm's underlying patent technology.
 
The price increase of arm company will lead to the latest round of risc-v architecture competition.


This article is adapted from "the world of Electronic Engineering". If you need to reprint it, please indicate the source

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