The foundation of all smartphone chipsets used in our handsets today is laid by British chip designer ARM. Almost all SoCs produced by Qualcomm, Samsung, Apple, MediaTek, and others is built by the company.
The chip design behemoth has released its fiscal year 2021 financial results, which show record-breaking revenue and profits throughout the year.
ARM revealed that its total revenue increased by 35% year on year due to strong growth in royalty and non-royalty revenue. During the year, total revenue reached $2.7 billion.
During the period, profit was $1 billion, representing a healthy 68 percent increase over the previous year. Profit margins after adjustment increased by 37% overall.
Non-royalty licensing revenue was $1.13 billion, a 61 percent increase. This was attributed to ARM’s new business model, which made it easier for customers to license ARM technology.
Royalty revenues increased by 20% year on year, reaching $1.54 billion during the fiscal year. This was due to the rapid growth of 5G smartphones, as well as the incorporation of more ADAS and IVI chips into automobiles. The cost of 32-bit microcontrollers has also risen.
Rene Has, CEO of ARM, commented on the financial results, saying, “Our record results demonstrate that the demand for ARM technology and the strength of the ARM ecosystem has never been greater – our compute platform will power the next set of technology revolutions across cloud computing, automotive and autonomous systems, the IoT, the Metaverse and beyond.”
To read our blog on “Apple’s massive stock buyback will need accompanied with record profits,” click here.
