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May 31, 2011

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Microsoft adoption opens door for ARM

ARM Holdings Plc, whose chip designs are used in Apple Inc's iPad, said Microsoft Corp's adoption of its technology will help Windows software expand into cars and televisions.

ARM may start generating royalties from chips using its technology in Windows-based laptops and tablets as early as next year, Tudor Brown, the company's president, said. Microsoft's use of ARM technology will help the Cambridge, England-based chip designer gain market share, he said.

Microsoft will preview a Windows operating system designed for tablets this week, according to insiders. Adapting Windows to better support devices that can compete with Apple's iPad will also help ARM increase market share and may open the door for new uses for its technology, Brown said.

"Where it gets potentially game-changing is, what other opportunities does it open up for Microsoft," Brown said in Taipei. This opens up a much bigger market, and makes a valid and viable operating system for TVs and automotive electronics, he said.

ARM seeks new applications for its chip technology as it faces competition from Intel Corp, the world's biggest computer chipmaker. Semiconductors based on ARM's designs are used in most tablet computers and the company is also targeting the server computing market.

ARM expects its share of the market for chips used in mobile computers, such as tablets, notebooks and low-cost netbooks to jump fivefold to 50 percent by 2015, Brown said. The company's current 10 percent market share will expand to 15 percent by the end of the year, he said.

Microsoft will showcase the operating system's touch-screen interface running on hardware with an Nvidia Corp Tegra chip, said the insiders.


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