Subj : Arm may be planning to hike prices, has considered developing its
To   : All
From : TechnologyDaily
Date : Tue Jan 14 2025 21:15:05

Arm may be planning to hike prices, has considered developing its own chips

Date:
Tue, 14 Jan 2025 21:14:00 +0000

Description:
Arms future company strategy revealed in still-sealed testimony and documents 
from December 2024's royalty spat with Qualcomm.

FULL STORY
======================================================================Arm 
could be considering move to selling its own chips Details of proposed change 
 revealed as part of Qualcomms court win over Arm Switch in strategy could 
prove incredibly lucrative for Arm 

Semiconductor technology supplier Arm, which almost certainly has its 
hardware somewhere in your business smartphone , is known for assisting 
companies to make their own mobile-suited processors, but that could soon 
change with a mooted shift into manufacturing its own chips. 

A report from Reuters discusses Arms so called Picasso project; a bid to 
increase revenue by selling its own chips and competing with its own 
juggernaut customer base - including Qualcomm and Apple - that it normally 
sells ready-made Arm intellectual property to in order to assist with chip 
design. 

Arm may also be planning to hike the royalty rates for those customers. Arm v 
Qualcomm in brief 

Details of the proposed strategy were revealed as part of Qualcomms court win 
over Arm in a royalty dispute brought and lost by the latter in December 
2024. 

This would nominally have included Qualcomm, but Arm's purchase of the 
start-up Nuvia, in order to use its tech to produce its own chips gradually 
break away from the prior agreement, led to Arm filing a complaint in US 
Federal Court in Delaware over a breach in licensing terms. 

In the end, however, a jury ruled that Qualcomms Nuvia-tech chips were 
properly licensed, and ruled the company could continue to sell them as part 
of its route into the personal computing and AI sectors. Arms future plans to 
hose its customers 

Filings in those proceedings, that Reuters claims are still under court seal, 
reveal that the Picasso plan for Arm to sell its own chips (or indeed 
chiplets) came at the behest of Arm CEO Rene Haas, who, before he even took 
on that role, had generally described the companys biggest customers as hosed 
in an internal Teams message sent in December 2021. 

In fact, court evidence suggests Arm executives had been discussing 300% 
royalty rate increases for its customers using Armv9 - its latest computing 
architecture, as far back as 2019, in a bid to boost the companys smartphone 
revenue by $1 billion USD over the course of a decade. 

Its ultimately unclear as to whether this rate increase will happen or stick 
at all; use of Arms computing architecture doesnt necessarily require its 
ready-made component blueprints. 

And, as Reuters points out, many of Arms biggest customers-turned competitors 
could survive without those blueprints and still design their own parts. You 
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the best business laptops right now



======================================================================
Link to news story:
https://www.techradar.com/pro/arm-may-be-planning-to-hike-prices-has-considere
d-developing-its-own-chips


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