(keitai-l) Re: Keitai components

From: Benjamin Kowarsch <benjk_at_mac.com>
Date: 08/23/01
Message-Id: <p04330110b7aac0ec5845@[10.0.1.2]>
>Everyone knows that ARM is the biggest
>supplier of core processors for mobile phones, but how do you explain the fact
>that Texus Instruments is the largest supplier of actual DSP chips for mobile
>phones? TI actually licenses the ARM core for its DSPs, like most of the DSP
>makers also license the core processor design from ARM.

Last time I looked, Advanced Risc Machines' (aka ARM) focus was 
*solely* on design and they did not make any chips. AFAIK, they live 
entirely from licensing fees chip makers pay them for their designs. 
I'd be surprised if that had changed recently.

>While ARM currently dominates the market, Intel is making a run into 
>the market
>with their StrongARM chip, which they brought off Compaq/DEC.

...which DEC licensed from ARM, including the use of the trademark 
"ARM" in "StrongARM".

In other words, Intel's StrongARM is another design obtained from 
ARM, hence a member of the ARM family.

ARM have been quite successful with their design-only formula. When 
they design a new chip, they need not worry about a new fab. PDA's 
have been using ARM designed chips ever since the Apple Newton. ARM's 
specialty is powerful CPUs that use little power, which obviously 
made their expertise very valuable to mobile phone manufacturers.

However, this model is not unique to the world of computer chips. 
BMW's M1 sports car for example was designed entirely by Ferrari, the 
only thing that is BMW is the engine. If you look at the car you can 
actually see that it is a Bavarian Ferrari ;-) Same goes for the BMW 
8 series.

Another example, Rolls-Royce have sold their famous car production 
and brands to BMW and Volkswagen, but they did so because it didn't 
seem anywhere as profitable as their engineering business, which, 
similar to ARM, designs almost anything mechanic for other companies. 
Aircraft engines and cars were the rare exceptions where they 
actually manufacture(d) the things they design.

Porsche is another company that while famous for making cars is more 
of an engineering shop that designs almost anything for other 
companies, even including sports cars and engines. Regardless of what 
they are called when they roll off the assembly line, most European 
sports cars are designed either by Ferrari or by Porsche if not 
entirely then at least partially.

We have recently seen the same thing happening with mobile phones 
when Ericsson sold off their phone manufacturing business and now 
focuses on the design of phones instead of making them.

Most CDMA phones contain either a Qualcomm kit or a Samsung kit, 
regardless of what the label says on the case.

This trend of outsourcing and specialisation is likely to continue 
and will possibly intensify.

regards
benjamin

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Received on Thu Aug 23 17:48:48 2001