ARM Business Model Applied to Computing

With the Silicon Handcuffs Off, Taiwan Will Lead A New Era of Choice in Computing

With ARM and its expansive Partner ecosystem providing compelling platforms for the (mobile) computing market, Taiwan’s ODMs and OEMs, for the first time, will have the freedom to innovate and differentiate through a new class of Smart Mobile Device that they provide.

I’ve spent many a year in the traditional PC industry, but now I’m seeing signs of a major transformation happening at the ODMs. For the first time, they feel the freedom to move from implementing a defined specification/device to making new devices that leverage the base technology. This freedom allows them to choose the best ARM Partner for the class of device that they are designing.

Computex 2009

Having finished a week tour in Taiwan meeting with ODMs, I was amazed at the focus and excitement surrounding this year’s Computex. As usual, the ODMs are striving to beat out their competition by showcasing their products to existing and prospective OEMs. However what makes this year unique is the opportunity that they see in the diverging PC market and the potential to change what has been the legacy for the last 20+ years.

Taiwan has built its business model of suppliers to a common platform driven primarily by one silicon company. The model runs on razor thin margins with little room for differentiation. Notebook X must have these features; netbook Y must have these features. This singularity results in products that all look the same on the store shelves with the silicon company taking the lion’s share of the available profits.

ARM enters the computing market to change it forever

What do ODMs/OEMs want? Better margins, differentiation, a growing market and leverage. Which Partner can provide this new paradigm: ARM. Why? You don’t have to look far to see what ARM can do in a consumer segment – mobile handsets is the best example. This market has a large semiconductor supply base using ARM technology with over 1.7 billion ARM processor cores in 2008 with an increasing (not shrinking) market – even in this economy.

This offers the ODMs/OEMs many advantages that they don’t have in the PC space:

Choice – True open competition is where ODM/OEMs have a choice in the devices that they can create. This flexibility keeps costs down and margins in their pocket. And the consumer wins by having more choice in products.

Innovation – ODMs/OEMs are free to innovate. They can build devices that are not restricted to one type of processor or silicon supplier. They can build a netbook with a 15" display if they want and have HD video; or they can use a supplier who can deliver 1080p playback for 12 hours instead of 6 hours; or have GPS integrated; or ….. With the 200+ ARM Silicon Partners, now ODMs/OEMS have a choice.

Strategic Partnership – ODMs/OEMs have the ability to drive their special requirements through a (or multiple) close partnership(s) with a single supplier to get a differentiated advantage and develop a device that differentiates itself from others.

ARM Partners deliver technology that makes cool and wow stuff a reality. It is going to be fun to see what happens when this spirit is applied to computing and Taiwan takes the silicon handcuffs off.


Bob Morris, Director of Mobile Computing, ARM, is fascinated with the rapid changes that are shaking the mobile and computing worlds. After missing grabbing the golden computing ring with PowerPC and Mac-clones, Bob is glad to have a front room seat in what is shaping up as the first major change in the computing industry in 30 yrs.

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