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Arm wants to improve profitability, proposes big changes to pricing model

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British chip designer Arm has put forth a proposal that modifies how they charge for chip licensing, according to a report by Financial Times. With their current.
In context: Arm’s owner Softbank has been facing financial woes for a while and are looking to increase profits from their most valuable asset, the Arm instruction set. Chips based on the Arm architecture are found in nearly all mobile computing devices, also making their way into servers more recently. With a new proposed pricing model, Arm is looking to change how their chip licensing model works.
British chip designer Arm has put forth a proposal that modifies how they charge for chip licensing, according to a report by Financial Times. With their current model, Arm charges royalties of 1-2% based on the value of the chip, says Sravan Kundojjala, an analyst at TechInsights.

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