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ARM Nurtures the Business Ecosystem from the Beginning

In: Business Ecosystems

Author

Listed:
  • Ke Rong

    (Bournemouth University)

  • Yongjiang Shi

    (University of Cambridge)

Abstract

ARM is the world’s leading semiconductor IP (intellectual property) supplier. IP1 is designed to generate a specific function, which is equivalent to the heart of semiconductor chips. ARM has offered the IP license business model to those IC design companies. Following the business model, IC design companies develop their chips by combining different IPs from ARM with their own design to deliver the chips. ARM charges license fees to partners using ARM’s IP to design other chips. ARM also gets a royalty fee when partners ship ARM-IP-based chips. In order to attract more users, ARM set up a ‘connected community’ in order to provide their partners with a range of tools, software and systems IP to facilitate adoption and incorporation (Finlay 2002). ARM also licenses the IPs to chip manufacturers to improve their technique for manufacturing ARM-based chips.2 ARM-IP-based chips are used by different OEMs for different digital markets including the mobile, computing, embedded and home market.

Suggested Citation

  • Ke Rong & Yongjiang Shi, 2015. "ARM Nurtures the Business Ecosystem from the Beginning," Palgrave Macmillan Books, in: Business Ecosystems, chapter 5, pages 93-108, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-40592-0_5
    DOI: 10.1057/9781137405920_5
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    Cited by:

    1. Palmié, Maximilian & Miehé, Lucas & Oghazi, Pejvak & Parida, Vinit & Wincent, Joakim, 2022. "The evolution of the digital service ecosystem and digital business model innovation in retail: The emergence of meta-ecosystems and the value of physical interactions," Technological Forecasting and Social Change, Elsevier, vol. 177(C).

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