ARM’s New Microchips Could Boost Smartphones Performance 3.5 Times

Rather than making its own chips, ARM licenses its processor technology to other semiconductor companies (PHOTO CREDIT: Bloomberg News)
Rather than making its own chips, ARM licenses its processor technology to other semiconductor companies (PHOTO CREDIT: Bloomberg News)

British microchip designer ARM Holdings has unveiled a new processor with improved computing performance and beefed-up graphics aimed at smartphones and tablets.

ARM’s new Cortex-A72 processor design and related technology improvements come as the smartphone industry struggles with cooling demand after years of explosive growth sparked by Apple’s iPhone in 2007.

Investors are concerned about lower royalty rates for ARM as growth in the smartphone market shifts to China, where consumers typically buy devices priced at $200 or less, compared with more than $600 in the US.

Rather than making its own chips, ARM licenses its processor technology to other semiconductor companies, including Qualcomm and Samsung, as well as to Apple. It receives royalties based on the selling prices of chips shipped by its partners.

ARM’s new processor has 3.5 times the performance of comparable chips from 2014, executives said at an event in San Francisco.

The chip design will also deliver a 75pc reduction in energy use, helping reduce battery drain on smartphones, they claimed.

Some of the improvements will be due to advances in manufacturing technology at contract manufacturers like Taiwan Semiconductor Manufacturing, the Cambridge-based company said.

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SOURCE: The Telegraph UK, Reuters

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