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International Business Machines Corp. (NYSE:IBM) Licences ARM Holdings plc (NASDAQ:ARMH)’s Mobile Processors

Written by on October 25, 2013

International Business Machines Corp. (NYSE:IBM) has licensed tablet and smart-phone processor designs from ARM Holdings plc (NASDAQ:ARMH), which will be used in new communications and networking gear.

The computer manufacturer’s spokesman, Michael Corrado said in an email that with the new licenses; the company has the competency to add mobile processing to complement our high performance networking and mobile front end businesses such as handsets and tablets.

The new deal means the company can make use of Cortex-A7, Cortex-A12, ARM’s Cortex-A15, and Cortex-M4 cores, as well as the ARM Mali-450 graphics processing unit. These are aimed at tablets chips and beefy phone, and the computer manufacturer wants them to confidently build improved networks for mobile operators and the like.

VP of microelectronics at the company, Steve Ray said in a statement, “the firm is a top provider of custom built, system on a chip technology to communications corporations, the silicon technology that has driven much of the mobile computing revolution.”

“With the addition of ARM’s advanced 32bit microprocessors and peripherals to our power based offerings, our customers will now have the widest array of leading silicon technology and design services available, providing them the facility to make the next generation of communications hardware.”

The new technology will possibly increase the computer manufacturer’s on-going efforts to make its power chip platform more appropriate. While the firm has had a lot of success creating networking and communications chips using the power architecture, augmenting that with some ARM Holdings plc (NASDAQ:ARMH) technology won’t hurt.

Tom Cronk, general manager of ARM’s processor division said, “International Business Machines Corp. (NYSE:IBM)’s manufacturing leadership and expertise in semiconductor innovation means that this agreement will result in a highly competitive portfolio of custom ARM based solutions being deployed by leading networking infrastructure firms worldwide.”

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