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February 10 - February 16, 2014

• The ubiquitous smartphone chip designer moves in on Intel

• "ARM has never made money commensurate with the amount of disruption they have caused'

Technology

•4 Most people have heard of Intel. The

company, which makes the chips that

power the world's PCs and servers,

pulled off one of the great marketing

triumphs of the past 50 years with

its "Intel Inside" campaign. About

400 million computers containing Intel

chips are expected to be sold this year.

Few people have heard of

ARM Holdings, even though sales of

devices containing its flavor of chips

are projected to be 25 times that of

Intel. The chips found in 99 percent of

the world's smartphones and tablets

are ARM designs. About 4.3 billion

people, 60 percent of the world's population, touch a device carrying an ARM

chip each day. That's an astounding

number considering that only slightly

more-64 percent-have access to basic

sanitation. Chief Executive Officer

Simon Segars says the 50 billionth

product containing an ARM-designed

chip shipped during the fourth quarter

of 2013, and he expects that number

to double in the next few years. ARM,

based in Cambridge, England, reported

sales for the year were up 22 percent

from 2012, and its U.S. shares have

been on afive-yeartear, rising roughly

tenfold, to $44.44, as of Feb. 5.

ARM chips can be found in every

iPhone and iPad, and most Kindle

e-readers and Android devices. Given

that reach, ARM makes what can

seem like an absurdly small amount of

money. The company averages pennies

on each smartphone sold with its chip

designs inside, while Intel makes tens

to hundreds of dollars on each of its

chips. Last year marked the first in

which...