How Arm aims to squeeze device makers for cash rather than pocket pennies for cores
As you might expect, pushing higher license fees onto device manufacturers isn't going over well with everyone involved, with one Chinese smartphone maker grumbling that the royalties would be several-times higher than what Arm gets now. We believe a good part of the momentum behind
Imagination Technologies – which designs and licenses families of GPUs that rival Arm's graphics cores, and has– is among those who have noticed unrest in the semiconductor world over Arm's whispered intentions. "Arm’s behavior is unsettling their existing customer base with their customers complaining to us around their aggressive pricing," a spokesperson for Imagination told us."We have no plans to change our business model as it’s important that chipmakers and device makers continue to have the freedom to choose their IP provider as this is key to driving innovation and technological advancement.
That's not to say Arm won't bring similar changes to architectural license holders. The rules governing these licenses, which are used to develop custom chips compatible with the Arm instruction set, are at the heart of Qualcomm'swith Arm over the acquisition of chip startup Nuvia in 2021. Qualcomm paid $1.4 billion for that startup with a plan to develop its core tech into high-end CPUs for datacenter, phones, and other applications.
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