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Arm’s push into cars ‘a logical step’ amid competition from RISC-V

Chip designer Arm is rapidly expanding its automotive business amid increasing competition from open-source rival RISC-V.

The segment’s turnover has doubled since 2020, the Financial Times reports reports. Dennis Laudick, VP automotive go-to-market at Arm, attributed the growth to the number of chips needed for high-end cars, which he described as “data [centers] on wheels.”

This trend will accelerate as demand for electric and autonomous vehicles grows. Semico Research predicts the automotive chip IP market will double by 2027, which could prove critical to Arm’s future business.

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The UK-based company produces chip designs used by an estimated 95% of smartphones, but the company’s star has faded in recent months. Financial problems at parent company Softbank and a growing number of rivals have raised concerns about Arm’s long-term prospects.

Mark Lippett, CEO of chip specialist XMOStold TNW that focusing on vehicles was a sensible response.

“Thinking about the human experience, rather than the powertrain and other deeply embedded electronics that fit into a car, the interface with the driver is increasingly reliant on technology originally developed for handsets and tablets,” he said. “As such, advancements in the automotive sector are a logical next step for Arm.”

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