# Episode 12: Arm's Business Model Shift

- Show: [The Circuit](https://hardwarepodcasts.com/podcast/the-circuit)
- Published: 2023-03-28
- Length: 40m
- Episode: 12
- Page: https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift
- Listen: https://share.transistor.fm/s/a865e737

## Summary

Ben Bajarin and Jay Goldberg discuss a Financial Times report that Arm is shifting its business model from traditional royalties to a percentage of the selling price (ASP) of end products, a move driven by SoftBank's desire to maximize Arm's IPO valuation. They analyze the potential unintended consequences, such as penalizing RISC-V startups and pushing architecture licensees like Apple and NVIDIA back toward custom core development. The hosts also explore the broader implications for IP licensing, comparing Arm's challenges to Qualcomm's historical litigation, and examine the evolving landscape of intellectual property protection in China.

## Chapters

- [0:01](https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift#t=1) Introduction: Arm's Proposed Business Model Shift
- [2:05](https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift#t=125) Impact on RISC-V and Corporate Chip Development
- [4:28](https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift#t=268) Valuation Goals and Licensing Comparisons
- [7:02](https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift#t=422) Unintended Consequences for Architecture Licensees
- [14:58](https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift#t=898) IPO Motivations and Pricing Strategy Critique
- [19:06](https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift#t=1146) Implementation Challenges and Sales Mechanics
- [24:54](https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift#t=1494) Competitive Advantage of Custom Architecture
- [28:02](https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift#t=1682) The Future of IP Business Models and Chiplets
- [32:24](https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift#t=1944) Intellectual Property Protection in China

## Topics

- [Chips, FPGAs & semiconductors](https://hardwarepodcasts.com/topic/chips-and-fpgas)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Intellectual property](https://hardwarepodcasts.com/topic/intellectual-property)
- [Growth, exits & acquisitions](https://hardwarepodcasts.com/topic/growth-exits-and-acquisitions)
- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)

## Most relevant to

large enterprises

## Mentioned

- Arm (company)
- RISC-V (other)
- Qualcomm (company)
- Apple (company)
- NVIDIA (company)
- Broadcom (company)
- MediaTek (company)
- SoftBank (company)
- Rambus (company)
- Synopsys (company)
- Cadence (company)
- Huawei (company)
- Vivo (company)
- OPPO (company)
- Expedera (company)

## Related episodes from other shows

- [Launch of RISC-V Special Project | MIPS vs. RISC-V | RISC-V Impact on ARM](https://hardwarepodcasts.com/podcast/ee-times-current/2019-02-18-launch-of-risc-v-special-project-mips-vs-risc-v-risc-v-impact-on-arm) (EE Times Current)
- [Fear & Loathing on the M&A Trail](https://hardwarepodcasts.com/podcast/ee-times-current/2021-02-26-fear-loathing-on-the-m-a-trail) (EE Times Current)
- [Tektronix, ChipReport.tv, & the Signal Path - Temperative Tegmen Temperature](https://hardwarepodcasts.com/podcast/the-amp-hour/2012-07-30-tektronix-chipreport-tv-the-signal-path-temperative-tegmen-temperature) (The Amp Hour)
- [Seismology 1: Nvidia & Arm | Seismology 2: US IC Manufacturing on the Rebound](https://hardwarepodcasts.com/podcast/ee-times-current/2020-08-07-seismology-1-nvidia-arm-seismology-2-us-ic-manufacturing-on-the-rebound) (EE Times Current)
- [Nvidia & Arm: The East Coast Perspective](https://hardwarepodcasts.com/podcast/ee-times-current/2021-04-23-nvidia-arm-the-east-coast-perspective) (EE Times Current)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/the-circuit/2023-03-28-episode-12-arms-business-model-shift. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to The Circuit.