ARM in 2008

Our revenue largely comprises of licence and royalty payments.

2008 revenue breakdown

• Royalty $266.8m
• Licensing$189.7m
• Other$89.7m

2008 revenue from licensing

• Processor $145.1m
• Physical IP$44.6m
• Total$189.7m

2008 revenue from royalties

• Processor $226.5m
• Physical IP$40.3m
• Total$266.8m

Processor royalties grew by 28% to $226.5 million.

Physical IP royalties grew by 24% to $40.3 million.

In 2008 we have continued to grow our processor licence base – increasing the number of licences in the year by 61 to a total of 587.

Number of processor licences

• Additional licences signed in 2008
• Total installed licensing base

During the year, ten of the top 20 semiconductor companies re-equipped their product lines with new ARM processors, while others licensed their first ARM processors. A total of 210 leading companies have licensed ARM technology.

Processor partners

• Cumulative licensees
• Partners paying royalties

Of these 210 companies, 90 are now paying ARM royalties.

Our processors go into both mobile and non-mobile applications.

2008 licences by application (number)

• Mobile 19
• Non-mobile38
• Both4

The use of ARM processors in non-mobile devices is growing rapidly. In 2008, about two-thirds of our licences were for non-mobile applications.

2008 royalties by application (units shipped)

• Mobile 2.6bn
• Non-mobile1.4bn
• Total4.0bn

In 2008, units shipped by our partners into mobile applications totalled 2.6 billion – an increase of 35%.

Beyond mobile, our partners shipped 1.4 billion ARM processors – an increase of 45%.

Number of physical IP licences

• Additional licences signed in 2008
• Total installed licensing base

Our physical IP division has created a portfolio of products for licensing by leading semiconductor manufacturers, yielding significant contracts.

All of the principal foundries have licensed ARM physical IP for use in their chip manufacturing processes. In 2008 six of the top 20 semiconductor companies licensed ARM physical IP.

Physical IP customers (number)

• Foundry licensees
• Foundry manufacturing process nodes supported
• Partners paying royalties

25 of our physical IP customers are now paying ARM royalties.

2009 and beyond...

During 2009 we will release several new ARM products, our silicon partners will bring many new chip designs to market and we expect many thousands of new ARM Powered product designs will go on sale.

We intend to continue to grow our processor and physical IP licence base, and in doing so we will continue to grow the size of our royalty-generating opportunity.