The automotive segment of British semiconductor designer Arm has become one of its fastest-growing markets, doubling its revenue since 2020.
Speaking to the Financial Times, Dennis Laudick, vice president of automotive go-to-market at Arm said the vehicle chip side of the company has been growing significantly faster than areas such as smartphone chips.
The automotive chip market has become a huge part of the vehicle manufacturing industry in recent years, as modern cars have become reliant on more and more microchips to handle new features.
“A high-end car is approaching one of the most complex pieces of software you can have in the world at the moment,” Laudick told the FT.
The increase in popularity of electric vehicles and self-driving cars will likely continue the trend of growth in the automotive chip market. However, the inclusion of more chips in cars has caused production bottlenecks during the semiconductor supply chain crunch.
It’s unclear how much emphasis Arm will put on the automotive area of its business as the company approaches a long-awaited IPO.
The Cambridge-headquartered microchip company’s upcoming public listing has been the subject of highly publicised speculation. Japanese parent company SoftBank has been weighing up an IPO in the UK, US or a dual listing.
Arm informed investors in November that it was “unlikely” the IPO would take place before April 2023, citing “global economic uncertainty” as a cause for caution. Despite this, the company has said it remains “fully committed to floating sometime in 2023.”