Decoder with Nilay Patel How Arm conquered the chip market without making a single chip, with CEO Rene Haas
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Sep 27, 2022 
Rene Haas, CEO of Arm, a powerhouse in chip design without chip manufacturing, shares insights from the forefront of modern tech. He discusses Arm's pivotal licensing model and its impact on devices ranging from smartphones to cars. Rene delves into the delicate balance of intuition and data in decision-making, the ongoing chip shortage, and the future of automotive tech. He also highlights Arm's significant role in the transition to Apple’s ARM-based chips and the implications of the CHIPS Act for the semiconductor industry.
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Failed NVIDIA Acquisition
- SoftBank’s attempted sale of Arm to NVIDIA failed due to industry opposition and regulatory hurdles.
- This led to Arm's renewed plans for an IPO, a significant shift from its previous stance.
Arm's Business Model
- Arm designs and licenses intellectual property, primarily CPUs, for various electronic devices.
- They don't manufacture chips themselves, but their designs are used in billions of chips worldwide.
Arm's Revenue Streams
- Arm's revenue comes from two sources: upfront licensing fees and per-unit royalties.
- Customers pay royalties for each chip shipped containing Arm's designs.
