SoftBank’s chip tech firm Arm hits all-time high in 2021

Rene Haas, CEO of chip technology company Arm Ltd, poses in this handout photo taken in March 2022 in San Jose, California, USA. This photo was taken in March 2022. Arm/Handout via REUTERS

SAN FRANCISCO – May 12 (Reuters) – Arm Ltd, the chip technology company of SoftBank Group Corp (9984.T), reported record revenue for 2021 on Thursday and CEO Rene Haas told Reuters the prospects for the new chip design business are strong. said that

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Arm, which makes the basic blueprints used to design chips, last year’s revenue was $2.7 billion, up 35% year-over-year. Licensing business revenue increased 61% to $1.13 billion, and royalties (which track the number of chips sold using Arm technology) increased 20% to $1.54 billion.

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Haas said the licensing business is “all about a company spending money with Arm to design chips for the future.”

When asked about the earnings outlook, he said, “We’ve never done more than $1 billion, so I’d say it’s a good leading indicator for product demand.”

Haas said 29.2 billion chips using Arm technology were shipped last year, compared to nearly 8 billion in the fourth quarter. He said that as a result of Arm’s focus on the automotive sector three or four years ago, the sector’s revenue more than doubled and profited from last year, thanks to electrification and improved computing power in cars.

Regarding Arm’s automotive business, Haas said, “It would have been better if there had been more supply.”

Haas declined to talk about the potential value Arm could get from the stock market. In September 2020, Nvidia offered to pay Arm up to $40 billion. SoftBank acquired it for $32 billion.

Haas also reiterated that Arm has ousted former CEO Allen Wu by resolving a public dispute in a Chinese joint venture. He said the venture, Arm China, accounts for about 20% of the company’s revenue.

“One thing I can say is that we had great results last year and it wouldn’t have happened if China JV didn’t do well,” he said.

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Report by Jane Lanhee Lee; Edited by David Gregorio

Our standards: Thomson Reuters Trust Principles.


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