ARM, which provides a wide range of processor designs and software platforms from sensors to supercomputers, announced record earnings driven by the semiconductor boom.

ARM announced its fiscal year 2021 (April 2021 to March 2022) earnings on the 13th. Total revenue for 2021 reached $2.7 billion, a 35% increase over the previous year, and both royalty and non-royalty revenues increased significantly.

ARM reported $1.13 billion in licensing (non-royalty) revenue in 2021, up 61% year-over-year. ARM said, “New business models like ARM Flexible Access and ARM’s expanded product portfolio have driven growth by giving customers more ways and reasons to license ARM technology.”

Driven by the continued growth of 5G smartphones, the increase in ADAS and IVI semiconductors installed in vehicles, and the rising price of 32-bit MCUs, royalty revenue in 2021 increased by 20% to a record high of $1.54 billion.

Adjusted EBITDA rose 68% year-over-year to $1 billion, with an EBITDA margin of 37%.

As of fiscal year 2021, 29.2 billion ARM-based chips were shipped, with approximately 8 billion of them shipped in the fourth quarter. To date, more than 225 billion ARM-based chips have reportedly been shipped.

“Today’s results demonstrate that demand for ARM technology and the strength of the ARM ecosystem are stronger than ever,” said Rene Haas, ARM CEO. “ARM’s compute platforms are accelerating next-generation technology innovations in cloud computing, automotive and autonomous driving systems, IoT, and the metaverse.”

He added, “As we look to the future designed by ARM, our priority will be to invest more in roadmaps and engineering skills, aligned with our business strategy, to enable our partners to deliver the technologies they need. Through this, ARM, together with its ecosystem, will redefine the future of computing.”