Great article in the Times yesterday about ARM, including an interview with CEO Warren East: Warren East: ARM believes its strength lies in sharing. ARM is doing well, despite the current economic crisis, largely due to thinking well ahead in terms of the next generations of product. ARM relies heavily on R&D and licensing as part of its business model:
ARM has no plans to get into the manufacture or sale of semiconductor chips. Mr East said: “The unique thing about ARM is the combination of the business model and the technology. We have the lowest-power microprocessors there are and, rather than trying to be an Intel and rule the world, we share our revenue. We believe it is better to have a small slice of a big pie.”
That pretty much sums up what it means to be an R&D business with a tight IP strategy.
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