Smartphone Chip Designer ARM Looks to Car Computing for Growth
- Automotive semiconductor demand will reach $15 billion by 2020
- ARM pushing higher-margin chips to offset waning phone demand
Auto Chip Demand to Jump by $15 Billion: Arm CEO Segars
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As demand for smartphones slows, chip designer ARM Holdings Plc is looking to the automotive industry to fuel growth over the next five years.
Automotive demand for semiconductors will jump 50 percent to $15 billion a year by 2020, Chief Executive Officer Simon Segars said in a Bloomberg Television interview on Wednesday. ARM, whose chip designs are found in most of the world’s smartphones, including Apple Inc.’s iPhone, reported royalty revenue trailing analysts’ estimates, sending the stock lower.