By Lorraine Luk
TAIPEI--U.K.-based ARM Holdings PLC (ARMH, ARM.LN), which
designs processor chips for smartphones and tablets, said it aims
to grab up as much as 10% of the market for chips used in computer
servers by 2016, as the company tries to expand into markets
dominated by Intel Corp. (INTC).
ARM Chief Operating Officer Graham Budd said Tuesday that Dell
Inc. (DELL) and Hewlett-Packard Co. (HPQ) are testing server chips
designed by ARM. Mr. Budd said he expects the first ARM-based
server will hit the market by the end of this year and the company
is aiming for a market share of 5%-10% by 2016.
"We have seen a lot of demand," as server makers try to cut
power consumption by using ARM-based chips, said Mr. Budd in an
interview on the sidelines of the Computex computer industry trade
show in Taiwan. .
ARM is looking to challenge Intel's dominant position in the
market for chips used in PCs and servers, focusing on
power-efficiency as its main advantage.
ARM doesn't build chips itself but designs processor technology
that it licenses to companies such as Qualcomm Inc. (QCOM) and
Nvidia Corp. (NVDA). Such processors are used in nearly all mobile
devices, including those from Apple Inc. (AAPL).
ARM and Intel have been trying to expand in each other's market,
with ARM-based chips making a push into PCs and
servers--traditionally Intel's markets--while Intel is increasing
its focus on smartphones and tablets.
Mr. Budd said that he has high hopes for ARM's expansion in the
notebook PC market, as a version of Microsoft Corp.'s (MSFT)
next-generation Windows 8 operating system, dubbed Windows RT, will
be compatible with ARM processors.
Taiwanese PC maker Asustek Computer Inc. (2357.TW) on Monday
unveiled a tablet running on Windows RT with an ARM processor and
said it plans to launch it in the fourth quarter.
ARM said last month that it expects processors made by its
licensees to capture about 10%-20% of the global notebook PC market
by 2014 or 2015.
Write to Lorraine Luk at lorraine.luk@dowjones.com
