Flextronics to Resell ARM Licenses

The manufacturer says . . .

Murray Disman says . . .

Flextronics Semiconductor Becomes First Partner In New ARM Licensing Program Agreement Enables Flextronics to License ARM Cores to Third Parties SUNNYVALE, Calif. and CAMBRIDGE, U.K.--Nov. 14, 2002--Flextronics Semiconductor, a business unit of Flextronics, the leading Electronics Manufacturing Services (EMS) provider, and ARM, the industry's leading provider of 16/32-bit embedded RISC processor technology, announced that Flextronics Semiconductor is the first partner to participate in the new ARM Approved Licensing Program. This new program will enable Flextronics Semiconductor to license specific ARM core technology to their customers. ARM has introduced this new licensing program to enable partners such as Flextronics Semiconductor to license ARM core technology, thereby providing their customers with end-to-end services. The cores that can be currently licensed through Flextronics include the ARM7TDMI® core, theARM922T™ core, and the ARM946E core, and this offering will be expanded in line with the products to be offered through the ARM Foundry Program. "We have developed this new licensing program to enable even greater access to the industry-leading ARM architecture," said Mike Inglis, EVP, Marketing, ARM. "Flextronics is our first licensee in this new channel and, as a global industry leader, they have extensive manufacturing, design, and technology expertise to bring to OEMs worldwide. Our partnership with them in this new program will further increase momentum and open new markets to both parties." Since July, 2002, Flextronics has been a member of ATAP™, the ARM technology access program. As a member, Flextronics' ASIC design centers in Niwot, Colorado (U.S.A.) and Oak Ridge, Tennessee (U.S.A.) have been providing design services using the ARM core for their OEM customers. "Having the ability to license ARM cores directly to our customers will enable Flextronics to further penetrate this valuable market," said Glen Wiley, VP of Semiconductor Technology, Flextronics. "By dealing with one party for core technology, design, and manufacturing, Flextronics' customers can lower their costs while improving time-to-market."

ARM is developing different licensing schemes in an attempt to broaden its application base. The company has achieved nearly complete domination of the cellular handset market, which is characterized by a limited number of suppliers, each of which uses large quantities of devices based on hard ARM processor cores. ARM now has to develop new customers in different application areas to maintain its revenue growth rate. About two years ago, ARM set up its Foundry Program that is aimed at creating a path for fabless companies to build chips incorporating ARM's processor cores. There are two aspects to this program that now has about 50 partners—the Foundry Program Design License and the Foundry Program Manufacturing License. According to the company, the Foundry Program Design License includes a design kit that contains the elements required to develop a complete ARM core-based SoC design, and is said to provide a cost-effective route to producing such a design on a per-use basis. The Foundry Program Manufacturing License is granted to semiconductor foundries that currently include AMI, Chartered Semiconductor, Tower Semiconductor, TSMC, and UMC. The ARM7TDMI, ARM922T, ARM946E, and ARM1022E are the cores that are currently available through the program. As an extension of the program, ARM recently signed a license with eSilicon for the four cores in the Foundry Program, as well as the complete set of ARM PrimeCell peripheral cores. eSilicon is a fabless ASIC supplier. A major benefit for both ARM and eSilicon customers is that the customers will not have to work with ARM to license the cores. Chip Express has entered into a novel relationship with ARM that is aimed at IP developers that want to prove their designs in silicon. The company has licensed a synthesizable version of ARM's ARM7TDMI processor core, and will offer their clients the opportunity to build prototype ASICs containing the core. A Chip Express CX4551 gate array with 550K ASIC gates and 448Kbits of memory will be used for the prototypes. IP developers participating in the program will receive one wafer, or approximately 140 chips. The program fee, set at $50k, will cover netlist hand-off, the ARM7TDMI-S core and AMBA technology, technical support, and two packaging options. Participants in the program must use the chips they manufacture as prototypes, and the chips cannot be sold individually for profit. The Flextronics announcement breaks new ground in that, for the first time, ARM will allow a third party to actually sell licenses for its cores. Flextronics Semiconductor intends to use this capability to support its ASIC customers rather than to sell ARM cores on the open market. Fees for the cores will be included in Flextronics' NRE and other charges to its customers. The key difference from other ARM arrangements is that the Flextronics' customer will own the core. In addition, Flextronics will assume all support functions for the design. It is clear that ARM intends to extend this licensing arrangement to other qualified design-service operations.

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