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Surprise Industry Fact: ARM's Biggest Customer is Intel

By - Source: Netronome

Who would have thought? This piece originally slipped by under our radar, but it is a noteworthy piece of information, especially since we now know at least one specific ARM chip that Intel is manufacturing ARM cores in its fabs.

In 2010, Intel was ARM's most significant resource of licensing revenue, but it has been unclear which products Intel is paying licensing fees for.

According to an article published by EETimes, about 7.0 percent of ARM's 2010 revenue - $631.3 million - came from Intel. That amounts to about $44 million in licensing fees. The source of this information is Nomura Equity Research, which, however, did not disclose where this number came from and which products it relates to. Netronome, which uses Intel as a contract foundry for its NFP-6xxx series Flow Processor, recently stated that the chips will integrated an ARMv6-based ARM11 core. Depending on the success of the chips, it is likely that Intel's payments to ARM will be increasing down the road.

According to Nomura, TSMC contributes 5.7 percent to ARM's revenue base, Samsung 5.7 percent, TI 4.6 percent, and NEC 3.5 percent. Interestingly, there is also AMD on the list (2.5 percent) - ahead of Infineon, Apple, Qualcomm, Fujitsu, and UMC.

There are 22 Comments.
Top Comments
  • 13
    icrf , June 11, 2012 11:45 PM
    The largest customer is only 7% of revenue? That sounds like a nicely diversified client base.

    Did I miss it, or is there no link to the source? Googling shows it to be six months old and is really a better write-up on the topic: http://www.eetimes.com/electronics-news/4234459/ARM-customers
Other Comments
  • 13
    icrf , June 11, 2012 11:45 PM
    The largest customer is only 7% of revenue? That sounds like a nicely diversified client base.

    Did I miss it, or is there no link to the source? Googling shows it to be six months old and is really a better write-up on the topic: http://www.eetimes.com/electronics-news/4234459/ARM-customers
  • 5
    asnorton44 , June 11, 2012 11:10 PM
    ARMy of one
  • 4
    saturnus , June 12, 2012 1:37 AM
    It's hardly surprising news.

    An ARM micro-controller are at the core of practically every SATA II and SATA III interface. Ethernet controllers also require an ARM micro-controller. Both are things Intel produce, so naturally they have to pay license fees.

    No PCs can be made without minimum 2 ARM chips inside, and usually there are many more.
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