ARM's "small company, big ecology" survival philosophy

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"Do you know ARM?"

"arm, know, arm?"

This is a classic joke in the author's office. This conversation is placed in the electronic circle. If it was 5 years ago, the listener might not have any laughter in the fog, but now it must be the result of the awkwardness. It is undeniable that this also confirms the success and rapid rise of ARM.

As the representative of the IP licensing model, behind the success of ARM, it is the inevitable development trend of the IC industry, that is, gradually lowering the threshold for manufacturers to enter the IC design field, making the industrial ecology more diversified and differentiated, and the emergence of the Fabless model is promoting The first change in this trend, IP licensing can be called the second.

Among all the IP licensees, what is the achievement of ARM today, where will ARM go tomorrow? With these questions, the reporter interviewed Wu Xiong An, the president of ARM Greater China, and listened to his answer.

ARM的“小公司,大生态“生存哲学0

Wu Xiong An, President of ARM Greater China

Small company, big ecology

Indeed, as a special business model of IP licensing, the reliance on authorized customers and ecosystems can be imagined. Without authorized customers, it is impossible to survive. If authorized customers do not form a certain scale, they cannot constitute an ecosystem, influence and brand. There is no way to talk about it, and the scale and influence of the ARM ecosystem is obvious to all. "The foundry of TSMC and other manufacturers have made the production of chips popular, and manufacturers such as Red Sea have made the manufacture of civilians. Google has made the operating system OS civilian. What ARM is doing is to make the core processor technology civilian." Wu Xiong said.

Wu Xiong Ang told reporters that the current ARM ecosystem consists of the most direct customers, the largest number of IC manufacturers; the system vendors downstream of IC manufacturers; and third-party algorithms, software and design service providers that provide more added value and services. Wait.

Talking about the construction of ARM's ecosystem in China, this is inseparable from the rapid development of the domestic IC industry in recent years. Wu Xiong Ang also mentioned that the domestic IC industry, especially the important node of the processor industry development, should be the touch screen experience brought by Apple's first touch-screen mobile phone iPhone in 2007 and the rapid rise of the mobile Internet industry. Touch screen, especially large screen. The performance requirements of the mobile terminal for the mobile terminal continue to increase, and the domestic electronics industry and IC companies enter a qualitative change stage from alternative design to innovation creation. Domestic processor manufacturers including Ruixinwei and Quanzhi are also determined from this time. Grasping the opportunity to enter the field of mobile processors, due to the lack of accumulated R&D experience and the pressure to shorten the competition gap with international manufacturers, the low-power processor IP provided by ARM has become more and more want to enter the mobile Internet field. The choice of IC manufacturers. In 2013, ARM China partners shipped more than 1 billion units.

In addition to providing the most powerful processor platform, ARM's role is still the most important ecological adhesive and innovative catalyst. "We will find that many new product ideas and emerging applications are based on existing ecosystems, ARM's powerful ecosystem and IP technology make this possible, and a significant number of new consumer products are based on the ARM platform." Wu Xiong is Say.

Wu Xiong Ang sums up the success of ARM: it has established an ecological circle with strong activity and innovation; it provides a win-win model for the partners of the ecological circle, and the enterprises participating in it have high success rate and profit margin; The members of the ARM ecosystem are not limited to the ARM platform, and there can be unlimited innovation space on this basis.

At present, ARM has more than 2,800 employees worldwide. The outside world's evaluation of ARM is the most appropriate--"small company, big ecology", it is undeniable that ARM is small, but it is doing a subversive thing. Here, Wu Xiong Ang has repeatedly stressed that with the large-scale development of the electronics industry, no manufacturer can rely solely on independent operations to win the victory. Building an ecosystem will be something that every manufacturer must spare no effort to do, and ARM is optimistic about the future. Based on the vitality of the ARM ecosystem.

Emerging market opportunities

When it comes to the future development of ARM, emerging markets including China are naturally the focus of the exchange between reporters and Wu Xiong. Wu Xiong Ang said that the base and market capacity of China's consumer groups are destined to give the ARM ecosystem partners more opportunities, while the domestic upper-end service application vendors and equipment manufacturers have unique features in their functions and business models. The biggest feature is the combination of local market and global.

ARM has more closely linked China's ecosystem and the global ecosystem, and has provided a broader platform for domestic manufacturers to go abroad and introduce the latest foreign technology into the domestic market. Including actively helping domestic manufacturers to seek cooperation with large international manufacturers to help bring educational tablets from domestic manufacturers into international markets such as Thailand and Brazil.

At the same time, Wu Xiongang also mentioned that with the development of mobile internet, industrial innovations are constantly emerging, and new product forms and business models are in a state of blowout. As the boundaries of IT vendors, hardware vendors and software vendors are broken, LeTV 360, Baidu, Google, etc. have successively launched their own hardware products, so that the role of ARM's ecosystem is more obvious and opportunities are more.

On the other hand, ARM's own product development and market positioning are also push-pull development in the process of ecosystem construction and growth. Through the interaction and feedback of ecosystem partners, ARM achieves between its own product positioning and market demand. Balance, but also through its own product design, to promote its ecosystem partners into more markets and applications, which will drive the positive cycle of ARM's entire ecosystem. At present, ARM core-based processors have covered many applications such as consumer, industrial, automotive, medical, and communications. With the introduction of ARM 64-bit architecture and more new products, it is believed that its antenna will reach more fields.

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