ARM Architecture - ARM Licensees

ARM Licensees

ARM Ltd does not manufacture or sell CPU devices based on its own designs, but rather, licenses the processor architecture to interested parties. ARM offers a variety of licensing terms, varying in cost and deliverables. To all licensees, ARM provides an integratable hardware description of the ARM core, as well as complete software development toolset (compiler, debugger, SDK), and the right to sell manufactured silicon containing the ARM CPU.

Fabless licensees, who wish to integrate an ARM core into their own chip design, are usually only interested in acquiring a ready-to-manufacture verified IP core. For these customers, ARM delivers a gate netlist description of the chosen ARM core, along with an abstracted simulation model and test programs to aid design integration and verification. More ambitious customers, including integrated device manufacturers (IDM) and foundry operators, choose to acquire the processor IP in synthesizable RTL (Verilog) form. With the synthesizable RTL, the customer has the ability to perform architectural level optimisations and extensions. This allows the designer to achieve exotic design goals not otherwise possible with an unmodified netlist (high clock speed, very low power consumption, instruction set extensions, etc.). While ARM does not grant the licensee the right to resell the ARM architecture itself, licensees may freely sell manufactured product (chip devices, evaluation boards, complete systems, etc.). Merchant foundries can be a special case; not only are they allowed to sell finished silicon containing ARM cores, they generally hold the right to re-manufacture ARM cores for other customers.

Like most IP vendors, ARM prices its IP based on perceived value. In architectural terms, lower performing ARM cores command lower license costs than higher performing cores. In implementation terms, a synthesizable core costs more than a hard macro (blackbox) core. Complicating price matters, a merchant foundry which holds an ARM license (such as Samsung and Fujitsu) can offer reduced licensing costs to its fab customers. In exchange for acquiring the ARM core through the foundry's in-house design services, the customer can reduce or eliminate payment of ARM's upfront license fee. Compared to dedicated semiconductor foundries (such as TSMC and UMC) without in-house design services, Fujitsu/Samsung charge 2 to 3 times more per manufactured wafer. For low to mid volume applications, a design service foundry offers lower overall pricing (through subsidisation of the license fee). For high volume mass produced parts, the long term cost reduction achievable through lower wafer pricing reduces the impact of ARM's NRE (Non-Recurring Engineering) costs, making the dedicated foundry a better choice.

Many semiconductor or IC design firms hold ARM licenses: Analog Devices, AppliedMicro, Atmel, Broadcom, Cirrus Logic, Energy Micro, Faraday Technology, Freescale, Fujitsu, Intel (through its settlement with Digital Equipment Corporation), IBM, Infineon Technologies, Marvell Technology Group, Nintendo, Nvidia, NXP Semiconductors, OKI, Qualcomm, Samsung, Sharp, STMicroelectronics, and Texas Instruments are some of the many companies who have licensed the ARM in one form or another.