Intel’s microprocessor business is “doomed” claimed Europe’s leading tech entrepreneurs as mobile computing will replace the PC in the next wave of computing. ARM’s Dr. Hermann Hauser, said the value of chips which ARM collects a royalty on has overtaken Intel’s microprocessor revenue this year for the first time. Dr. Hauser remains a share holder in ARM, but is not on the board of directors.
Approximately 95% of the world’s mobile handsets and more than one-quarter of all electronic devices use an ARM chip.
“The reason why ARM is going to kill the microprocessor isn’t because Intel willn’t eventually produce an Atom [Intel’s low-power microprocessor] that might be as good as an ARM, but because Intel has the wrong business model,” said Dr. Hauser. “People in the mobile phone architecture don’t buy microprocessors. So if you sell microprocessors you have the wrong model. They license them. So it’s not Intel vs. ARM, it is Intel vs. every single semiconductor company in the world.”
He suggested that Intel needs to take a leaf from Apple’s book and help their customers: “They can do more vertical integration themselves so they can provide a more integrated solution to the likes of HP or Dell to better compete with Apple.”