Despite IT devices such as smartphones and PCs facing weak demand conditions, Arm royalty revenues achieved an all-time high, supported by chip growth in the IoT and automotive sectors.

Arm announced on the 14th that it recorded revenue of $656 million (approximately 862.2 billion won in Korean currency) in its fiscal 2022 second quarter results.

Among total revenue, Arm's license revenue was $193 million (approximately 253.7 billion won) and royalty revenue reached $463 million (approximately 608.6 billion won), setting an all-time record.

Arm partner companies shipped 7.5 billion Arm-based chips, a 9% increase year-over-year, and the Arm ecosystem is reported to be embedded in 240 billion chips to date.

Adjusted EBITDA was recorded at $326 million, maintaining an adjusted EBITDA margin rate of 50%.

Arm showed year-over-year growth increases across all market segments, with the automotive business division particularly recording all-time high royalty revenues. This reflects recent trends where advanced computing in the automotive sector is progressively being driven by ADAS adoption.

Additionally, demand for Arm solutions that simplify and accelerate IoT development is increasing. The IoT business division also recorded all-time high royalty revenues.

Major public cloud providers are continuously adopting Arm Neoverse, with expectations that Arm will redefine what is possible in cloud computing.

Despite a decline in smartphone sales during the same period, the Client (consumer technology) business division shows an upward trend in royalties. More Armv9-based 5G and premium smartphones are providing new mobile experiences. With successful key designs in infrastructure, automotive, and metaverse, demand for Arm technology continues to increase in growing markets.

Arm CEO René Haas emphasized, "Arm is defining the future of computing as our technology continues to be adopted across all markets we serve, as evidenced by the strong license results and all-time high royalty revenues recorded this quarter."

He added, "Through Arm's continued diversification, investments across all business segments are continuing to yield results, with particularly notable growth in the automotive and IoT sectors. Furthermore, with 240 billion Arm-based shipments and the future being designed based on Arm, there has never been a more exciting time for our business and ecosystem."