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ARM CEO Sees More Server Chips in Threat to Intel’s Dominance

ARM Holdings Plc Chief Executive Officer Simon Segars
ARM Holdings Plc Chief Executive Officer Simon Segars. Photographer: Chris Ratcliffe/Bloomberg

June 3 (Bloomberg) -- ARM Holdings Plc, the British chip company whose designs are used in Apple Inc.’s iPad, said more of its clients will begin making server chips in the coming year, a move that could threaten the dominance of Intel Corp.

“There are a number of our other licensees who are doing designs around ARM targeting this space,” Simon Segars, chief executive officer of the Cambridge, England-based company, said in an interview with Bloomberg News in Taipei. He declined to identify which companies may announce new server chips.

Advanced Micro Devices Inc., which trails Intel in the lucrative market for chips used to power data centers and networks, last month unveiled its first ARM-based server processor. Google Inc. is among companies considering a switch from Intel’s x86 standard to ARM systems-on-chips customized for its own needs, Bloomberg News reported in December.

“Lots of people we talk to are very interested in the disruption that can come in the data center from moving from an architecture where there’s a processor with a bunch of chips sitting around it to an SoC that’s tailored for a specific application,” Segars said today. He declined to say whether Google or other Internet companies will use its technology.

ARM is looking to new businesses outside of smartphones and tablets, such as connected devices like wireless-enabled cars and thermostats, and servers.

The company’s technology will be used in Samsung Electronics Co.’s Simband, a health-monitoring wristband that monitors data such as a user’s heart rate and blood pressure. A prototype of the device was unveiled last month.

ARM will open a new processor design center in Hsinchu, Taiwan, by the end of this year, its first in Asia, to tap the region’s rising demand for smartphones, connected devices and electronics, the company said yesterday.

Apart from phones, ARM designs the core of chips used in devices ranging from automotive electronics to washing machines. Last week, it said it planned to acquire Duolog Technologies Ltd., a company that specializes in technology that speeds up the design process for semiconductors.

To contact the reporters on this story: Amy Thomson in London at athomson6@bloomberg.net; Tim Culpan in Taipei at tculpan1@bloomberg.net

To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net; Michael Tighe at mtighe4@bloomberg.net Aaron Clark, Terje Langeland

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