Arm announces second-quarter report: licensing fees plunge 53% to $192.7 million

According to a report by the Register on the 14th, chip design company Arm announced its report for the second fiscal quarter ended September 30. Royalty revenues jumped to $463.2 million from $378.2 million in the same period last year.

However, total revenue fell 16% to $655.85 million as license fees plunged 53% to $192.7 million, a company spokesperson told The Register. Arm said that all segments of the royalty increased, with ADAS adoption "continuing to drive more advanced computing in the car," both the automotive business line and the Internet of Things reaching new highs.

Arm added that Nvidia's Grace processor will be one of the first chips to integrate the Neoverse V2 CPU core, coming in 2023. Despite the decline in smartphone shipments, device royalties also rose.

In the three months of the fiscal second quarter, Arm's customers shipped 7.5 billion Arm-based chips, up 9% year over year. The entire Arm ecosystem now has more than 240 billion Arm-based chips.

It is understood that Arm intends to restrict customers from using self-developed GPU, NPU and other architectures, and link the CPU license agreement with these component license agreements, and Arm will not extend this agreement. This means that Qualcomm and other semiconductor manufacturers will not be able to provide OEM customers with SoC components other than CPUs.