• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Technology & Startups

Tech supplier Arm plans to hike prices, has considered developing its own chips

January 13, 2025
in Technology & Startups
Reading Time: 5 mins read
A A
0
4
SHARES
8
VIEWS
Share on FacebookShare on Twitter


By Max A. Cherney and Stephen Nellis

SAN FRANCISCO (Reuters) – Arm Holdings (ARM), a technology supplier to chip firms, is developing a long-term strategy to hike prices by as much as 300% and has discussed designing its own chips in a move to compete with its biggest customers.

NasdaqGS – Delayed Quote • USD

At close: January 10 at 4:00:01 PM EST

For decades, the British firm kept a low profile while operating at the heart of billions of dollars of chip sales per year. It licenses the intellectual property that Apple, Qualcomm, Microsoft and others use to design their chips, charging a small royalty for each chip produced with Arm technology.

Despite being central to the rise of smartphones and energy-efficient data center chips, Arm has remained small compared to its customers, with $3.23 billion in revenue for fiscal year 2024. In its most recent fiscal year, Apple’s revenue from its hardware products, which are all powered by Arm-based chips, was more than 90 times larger.

But Masayoshi Son, CEO of SoftBank Group, which owns 90% of Arm, and Arm CEO Rene Haas, are determined to change that, according to plans revealed in a trial last month in which Arm aimed unsuccessfully to secure higher royalty rates from Qualcomm. The details of Arm’s ambitions, which were described in court testimony and documents that remain under seal, have not been previously reported.

Arm and Qualcomm declined to comment.

Known in its early stages as the “Picasso” project, Arm’s plans, which date back to at least 2019, aim for a roughly $1-billion increase in annual smartphone revenue over about 10 years, according to sealed executive testimony.

Arm planned to achieve this partly by increasing the per-chip royalty rates that customers pay for ready-made parts of chip designs that used its latest computing architecture, called Armv9.

During trial, documents were shown from August 2019 in which Arm executives discussed a 300% rate increase. In December 2019, Arm’s then-CEO Simon Segars told Son, Arm’s board chairman, that Arm had secured a deal with Qualcomm to use ready-made technology under the “Picasso” initiative.

But Qualcomm and other large customers such as Apple are sophisticated enough to design their own chips from scratch using Arm’s architecture without needing Arm’s higher-priced ready-made offerings, meaning they would not necessarily be subject to all of those rate increases.

“We have rough legacy agreements with Qualcomm and Fender,” Haas said in a Microsoft Teams chat held the day Qualcomm bought Nuvia in 2021, shown at trial. The startup would help Qualcomm use less of Arm’s ready-made technology.

“Fender” is Arm’s internal code name for Apple. Apple declined to comment.

‘Chill’ for customers

After SoftBank acquired Arm in 2016, the British firm’s computing architecture went from powering smartphones to making big inroads in PC and data center markets.

The plans Arm executives discussed included potentially inching closer to making a complete chip design of Arm’s own, according to testimony and documents at trial. Arm sells chip-design blueprints, but most of its customers still spend months completing the chip design.

“It was news to me that Arm is even thinking about (making its own chip),” said Tantra Analyst founder Prakash Sangam, who attended the trial. “It should send a chill down the spine of their customers.”

At the trial, Qualcomm attorneys showed a slide from Haas’ presentation to Arm’s board in February 2022 when he applied to become CEO that suggested Arm change its business model. Haas said instead of selling only chip blueprints, Arm should sell chips or chiplets, a smaller building block used to make some processors made by Advanced Micro Devices and others.

In a conversation with another Arm executive a few months earlier, Haas expressed confidence that Arm could compete against its own customers if it put a chip into the marketplace, according to testimony and documents.

“(The) rest are hosed,” Haas said in a Teams message from December 2021, shown during the trial, referring to the problems chip companies such as Qualcomm would face competing with a complete Arm chip design.

During the trial, Haas downplayed those comments, saying they reflected the long-term strategic spitballing that many executives do with colleagues and board members.

Haas said while Arm never got into the chip-design business, he is always considering possible strategies.

“That’s all I think about, is the future,” he told the eight-person jury.

(Reporting by Stephen Nellis and Max A. Cherney in San Francisco and Tom Wils in Wilmington, Delaware; editing by Kenneth Li and Rod Nickel)

Tags: Arm Holdingschip designQualcomm
Previous Post

Justin Trudeau made Canadians feel like strangers in their own land

Next Post

Germany reports illegal drone flights over military base

Related Posts

AI is upending the job market, even at AI companies

May 31, 2025
1

OPEC+ set to discuss July oil output hike, may be larger than 411,000 bpd, sources say

May 31, 2025
4
Next Post
Download app from appStore

Germany reports illegal drone flights over military base

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
At least 60 Palestinians killed in 24 hours

UN expert warns against scapegoating Netanyahu for Gaza atrocities

May 31, 2025
Gen Z and boomers are driving a leadership vacuum that’s threatening productivity and morale at work

Gen Z and boomers are driving a leadership vacuum that’s threatening productivity and morale at work todayheadline

May 31, 2025

Russia stocks lower at close of trade; MOEX Russia Index unchanged todayheadline

May 31, 2025

White House to withdraw Isaacman nomination to lead NASA

May 31, 2025

Recent News

At least 60 Palestinians killed in 24 hours

UN expert warns against scapegoating Netanyahu for Gaza atrocities

May 31, 2025
3
Gen Z and boomers are driving a leadership vacuum that’s threatening productivity and morale at work

Gen Z and boomers are driving a leadership vacuum that’s threatening productivity and morale at work todayheadline

May 31, 2025
4

Russia stocks lower at close of trade; MOEX Russia Index unchanged todayheadline

May 31, 2025
5

White House to withdraw Isaacman nomination to lead NASA

May 31, 2025
3

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

At least 60 Palestinians killed in 24 hours

UN expert warns against scapegoating Netanyahu for Gaza atrocities

May 31, 2025
Gen Z and boomers are driving a leadership vacuum that’s threatening productivity and morale at work

Gen Z and boomers are driving a leadership vacuum that’s threatening productivity and morale at work todayheadline

May 31, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co