Fri, Mar 21, 2014 - Page 13 News List

ARM targeting the networking, server markets

FORWARD THINKING:By 2018 the firm wants a 50 percent share of the smart cards, Internet of Things, embedded connectivity and wearable devices markets

By Lisa Wang  /  Staff reporter

ARM Holdings PLC, the chip designer whose products power Apple Inc’s iPhones, aims to seize a 30 percent share of the enterprise networking and energy-efficient servers market by 2018, part of the company’s efforts to seek new growth, a company executive said yesterday.

Last year, ARM had only a 5 percent share of the market, ARM investor relations vice president Ian Thornton said at a media briefing in Taipei.

The enterprise networking and energy-efficient server market is set to grow to US$20 billion in 2018, compared with US$13 billion last year, Thornton said.

The first ARM-based servers are due to be shipped later this year, Thornton said.

He said this year is another year of “potential opportunity” for growth and expects new technologies to further boost the firm’s revenue from royalties.

“We also see new markets, such as LTE [Long-Term Evolution], servers, the Internet of Things and wearable devices, further extending our market opportunities,” he said.

ARM is targeting a 50 percent share of the microcontrollers, smart cards, Internet of Things, wearable devices and embedded connectivity markets in 2018, when the market is set to expand to US$20 billion from US$14 billion last year, compared with the current 22 percent share, Thornton said.

Last year, ARM had about a 95 percent share of the market for application processors used in smartphones and tablets. The British chip designer expects to further benefit from that market, which ARM expects to grow 10 percent every year through 2018.

Last year, ARM’s partners shipped 10 billion ARM-based chips, bringing total shipments to 50 billion units. The company said its partners would soon expand accumulated shipments to 100 billion units.

“Greater China is the biggest driver [for ARM’s partners] to ship another 50 billion chips,” ARM Greater China president Allen Wu (吳昂雄) said.

Last year, ARM’s Greater China partners shipped 2 billion units, including 450 million mobile application processors, contributing 26 percent to ARM’s total revenue of US$1.12 billion.

The rise of the middle class, urbanization and industrial upgrades in China would boost chip consumption, which would in turn boost demand for Internet usage and mobile content, Wu said.

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