Phone
Intel, the worlds largest chipmaker, has produced scaled- down versions of its personal-computer chips called Atom for mobile devices and is aiming to break into to the market for smart phones like the iPhone and Palm Inc.s Pre.
“Im sure that Intel are going to get their Atom designed into a few handsets, its an inevitability,” ARM Chief Executive Officer Warren East said yesterday in an interview. “They go on their hands and knees. There will be a little bit of leakage, but its not going to be dramatic either way.”
Too many device manufacturers have invested in ARM technology used by chipmakers such as Qualcomm Inc., Texas Instruments Inc. and STMicroelectronics NV for them to be persuaded by Intel, said East, 48. In the same way, the attempts of Qualcomm and other chipmakers to get ARM designs into computers will likely fail to unseat Intels hold on that market, he said.
“I dont think ARM is going to take over the PC world from Intel, and I dont think Intel is going to take the smart-phone world from ARM,” he said. The two chip designs are more likely to compete directly for orders from makers of other devices, such as televisions and cars, as they add Internet connections to their products, East said.
Intel shares rose 6 cents to $19.72 yesterday in Nasdaq Stock Market trading. The stock has gained 35 percent this year. ARM was little changed at 160.3 pence in London trading, leaving it up 85 percent this year.
Designs, Licenses
ARM, based in Cambridge, England, sells designs and licenses technology to chipmakers and doesnt manufacture semiconductors itself. ARM chips are the key component of the majority of smart phones that will take 50 percent of the mobile market in the next few years, according to East. The company charges about 1 percent royalties.
Intel, based in Santa Clara, California, controls more than 80 percent of the market for personal computer chips. The company previously had a division that made chips using technology licensed from ARM. It sold the business to Marvell Technology Group Ltd. after failing to win enough orders from phone makers.
“We remain committed to bringing Intel architecture and all of its benefits to the handheld space,” company spokesman Bill Calder said. “Its a tens of billions of dollars opportunity and were not backing off, nor are we ceding ground because we dont have a leadership position.”