ARM on track to lead self-driving future: CEO

CAMBRIDGE, U.K. -- ARM Holdings is revving up work on autonomous cars as the British chip design house shifts its focus from smartphones to the so-called internet of things, CEO Simon Segars told The Nikkei in his first interview since the company was acquired by Japanese telecommunications giant SoftBank Group in September.
ARM ultimately aims to put its processors in every setting imaginable, becoming part of the foundation of a networked society, Segars said. Nonmobile operations will come to constitute the majority of sales, he said, as ARM relies less on the smartphones where it enjoys a 90%-plus market share in processors.
Automotive technology forms the core of this effort. Cars will become in essence supercomputers on wheels, Segars said. ARM is paying close attention to what kinds of algorithms and safety technologies are needed to make self-driving vehicles a reality, he said.
The company's primary customers are chipmakers. But it also maintains dialogue with automakers and autoparts manufacturers as well as software companies, Segars said. Collaborating with such diverse companies lets the chip design house incorporate the seeds of next-generation technology into products early on, he said. Though vehicle technologies take longer to develop than other elements of the internet of things, requiring a long-term approach, they will become a key field in the future, the CEO said.
First steps
ARM is discussing joint technological development with the likes of Toyota Motor, Nissan Motor, BMW and Daimler, according to another official. Partnerships with such components makers as Denso and Robert Bosch are also in the works.
These efforts go beyond automated driving. ARM is in talks with partners to put its technology to work in connected cars more broadly, as well as to reduce battery consumption and make gasoline vehicles more efficient, the official said. The company is apparently sharing plans up to seven years down the road with Toyota under a development partnership.
By establishing a solid presence in driver-assist systems as well as in-vehicle entertainment and navigation, ARM aims to secure its place as a leader in such next-generation technologies as automated driving.
ARM's acquisition by SoftBank opens the door to long-term strategic planning and will let the company raise spending on research and development above the current 25% or so of sales, the official said. ARM will also be able to retain its neutrality under the new parent -- a deciding factor in the acquisition deal.
SoftBank is a client of a client of a client for ARM, and there is no overlap between the companies' businesses, according to the official. The chip design house will be able to keep its current business model, built on licensing intellectual property to various chipmakers.

Competition in the chip design business is heating up as Eastern European and Taiwanese players mature. But according to Segars, ARM's strength is less technology itself than its ability to create a digital ecosystem. The company has also invested in software and related businesses to make ARM the world standard in chip design, he said.

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