Latest news with #Arm
Yahoo
10 hours ago
- Business
- Yahoo
Arm Q1 2026 Earnings Preview: Royalty Ramp in Focus
Arm will release fiscal first-quarter results after the bell on July 30, 2025. Consensus targets call for 12% revenue growth but a 13% drop in EPS versus Q1 2025. Shares are up 32% YTD, a move powered by AI and IoT demand. Royalty backlog and AI demand are the key watch-points. Remaining performance obligations were $2.23 billion at the end of Q4 FY25, down 10% YoY as prior deals converted to revenue. Management has called the drop timing-related and says growing Armv9 use in cloud and automotive will lift royalties through FY 2026. An update on large AI-accelerator licenses now in negotiation could refill RPO and restore confidence in the full-year sales range. Investors also want proof that a richer royalty mix can keep operating margin in the mid-40s while R&D rises to defend IP. Arm trades at 91 forward P/E and 35 forward P/S. A clean beat with upbeat AI and IoT commentary could keep that premium intact, but a renewed guide cut or slower royalty run-rate might cap any post-print upside. This article first appeared on GuruFocus.
The Star
a day ago
- Business
- The Star
Selangor invests in chip design capacity building
PETALING JAYA: The Selangor state government is committing between RM5mil and RM10mil annually over the next 10 years to develop the front-end semiconductor value chain, which involves chip designing. Selangor Mentri Besar Datuk Seri Amirudin Shari said the state's commitment also depends on the commitment from the federal government. He noted that the federal government, through the Economy Ministry, has increased its support from RM60mil to RM100mil. 'As of now, we are committing almost RM5mil to RM10mil a year. However, it depends on the commitment from the federal government. It is a one-to-one investment,' he told the media on the sidelines of the launch of the first-ever Arm-led training programme in Malaysia yesterday. This initiative is a collaborative effort between the Advanced Semiconductor Academy of Malaysia (Asem) and Arm. Hosted under the Malaysia IC Design Park initiative, the Arm On-Demand Training Programme commenced with an inaugural cohort of 400 engineers. The programme is also in line with the billion-ringgit deal that Malaysia secured with Arm Holdings PLC in March this year. Under the deal, Arm will provide Putrajaya with intellectual property (IP) licences and compute subsystems (CSS) for US$250mil (RM1.11bil), to be paid over 10 years. The United Kingdom-based firm will collect royalties on chips sold. Further, the Arm-Malaysia partnership earlier this year also entails the training of 10,000 local integrated circuit (IC) design engineers by Arm. Amirudin said the target is to train around 1,000 engineers a year, beginning with the first cohort of 400 engineers already enrolled in the programme. 'If we have two or three cohorts, we can reach our target of 1,000 each year,' he said. Amirudin said the Arm On-Demand Programme will move Selangor and Malaysia from completely relying on foreign direct investment towards building leaders to form startups which can later go on to be Selangor and Malaysia's leading companies to invest and export to other countries. 'I am thrilled that Arm has decided to commit the next decade of its technical and engineering know-how to hire Selangorians through a partnership with Asem, building on the success of the IC Design Park in Puchong which has over 400 engineers working with some of the leading companies in Malaysia and beyond,' he said. Rakuten Trade head of equity sales Vincent Lau said the amount allocated by the Selangor state government is a good starting point, especially in terms of talent development. 'For training purposes, the amount committed is sufficient – they have already started with a few cohorts, and it is clear the government is serious, especially with the Arm deal in place. 'If more is needed later on, I believe they will adjust accordingly,' he told StarBiz. Lau said it may not be sufficient if the funding is meant to cover the broader goal of developing front-end semiconductor capabilities, which typically require significant capital investment and long-term infrastructure planning. 'However, this is still an important first step. At least now we are on the right path,' he added. Tradeview Capital fund manager Neoh Jia Man said the RM5mil to RM10mil a year is 'definitely not enough' and that it is 'a drop in the ocean' in driving development in the local front-end semiconductor space. 'Not only is it a very specialised and capital-intensive segment of the semiconductor value chain, but Malaysia is also facing fierce competition from other countries, who are putting hundreds of millions of dollars into developing their own front-end IC design industries. 'The good thing is that the federal government is also stepping in with additional funding, and that collective effort could help alleviate some of the talent shortages – particularly in the front-end of the value chain,' he said. On whether the Arm On-Demand training programme can help to plug the talent gap in the semiconductor industry, Neoh said, 'The National Semiconductor Strategy targets 60,000 engineers in six years – about 10,000 annually. 'If 30% to 40% of those are meant for front-end roles, that is about 3,000 to 4,000 engineers a year. 'The Arm-led programme aims to train 10,000 engineers over 10 years, or about 1,000 a year. 'Hence, that covers roughly a third of what is needed for front-end IC design annually – which is actually a significant portion,' he said. To this end, Lau noted Arm's training programme will 'definitely help to plug the talent gap' in the sector. 'Even if we manage to fill 50% to 60% of the gap, it is already an improvement. Any increase in local talent supply is good, especially in light of the short supply of engineers,' he said.
New Straits Times
2 days ago
- Business
- New Straits Times
UK's semiconductor design giant Arm may train 10,000 Malaysian engineers over a decade
SUBANG JAYA: A total of 10,000 local engineers are expected to be trained over the next decade under a landmark initiative by UK-based semiconductor design giant Arm and Advanced Semiconductor Academy of Malaysia (ASEM). The Arm On-Demand training programme is aimed at building Malaysia's high-tech talent pipeline and accelerating its position in the global semiconductor industry. It is designed to equip Malaysian engineers with advanced skills in semiconductor design and development, particularly in front-end integrated circuit (IC) design. The initiative aligns with the country's broader ambition to transition from traditional assembly roles towards innovation-led activities such as chip design, intellectual property (IP) creation and advanced R&D. Selangor Menteri Besar Datuk Seri Amirudin Shari said the programme aims to create a new generation of future-ready professionals who can design chips, build companies, and compete on the world stage. "This is more than just training, it's about creating future-ready professionals who can design chips, build companies, and compete globally," Amirudin said at the launch here today. The programme targets 1,000 participants annually, with the first batch of 400 engineers already enrolled and each course typically spans three to four months and features intensive, industry-relevant modules. Amirudin said Selangor is working with 20 universities including Monash University Malaysia, Universiti Teknologi Mara (UiTM) and Universiti Putra Malaysia (UPM) through their respective engineering faculties. The event was also attended by key figures including Deputy Investment, Trade and Industry Minister Liew Chin Tong, Selangor exco for investment, trade and mobility Ng Sze Han and Monash University Malaysia president and pro vice-chancellor Professor Datuk Dr Adeeba Kamarulzaman. Industry players including Arm and MyStorage are also involved with graduates from earlier pilot cohorts have already received multiple job offers, with companies actively selecting top-performing candidates for employment. To ensure the programme's sustainability and impact, the Selangor state government has committed between RM5 million and RM10 million annually to support front-end semiconductor development. Meanwhile, the government - through the Economy MInistry - has increased its support from RM60 million to RM100 million, signalling strong national-level confidence in the initiative with total investments projected to exceed RM100 million over the next decade. Amirudin believes that the broader goal is to move Malaysia and Selangor in particular up the semiconductor value chain, shifting from traditional roles in assembly and packaging toward becoming a hub for chip design, IP creation and advanced R&D. "We must move towards owning the intellectual property so that these chips are not just labelled 'Assembled in Selangor', but 'Designed in Selangor', 'Made in Malaysia'," said Amirudin. He added that as global protectionism rises and old economic models break down, Malaysia must position itself as a creator not just a manufacturer of technology. "We can no longer afford to be a bit-part player in an industry that will shape the world economy for the next 30 years." Amirudin also said the ambitions will be detailed in Selangor Plan 2, set to be launched next year. He expressed confidence that semiconductor and E&E engineering will be prioritised under the upcoming 13th Malaysia Plan, to be announced by Prime Minister Datuk Seri Anwar Ibrahim on July 31.
New Straits Times
2 days ago
- Business
- New Straits Times
Amirudin: 10,000 local engineers to be trained under arm's 10-year semiconductor programme
SUBANG JAYA: A total of 10,000 local engineers are expected to be trained in the semiconductor field through a training programme by the United Kingdom's semiconductor design firm, Arm, over 10 years, said Selangor Menteri Besar Datuk Seri Amirudin Shari. The programme, known as Arm On-Demand, is the first Arm-led training programme in the country and is a strategic collaboration with the Advanced Semiconductor Academy of Malaysia (ASEM), a statement from ASEM said. It is aligned with the country's efforts to accelerate its ambition to develop homegrown chips within five to 10 years due to growing global demand for Artificial Intelligence (AI) and data centre technologies, the statement said. Amirudin said the initiative targets around 1,000 participants annually, with the first batch of 400 engineers already enrolled. "So, if we run two or three cohorts, we can reach that target each year," he told reporters at the programme's launch today. The event's highlight was a partnership signing ceremony between Arm, ASEM and 20 Malaysian universities, a symbolic and unified commitment to advance semiconductor education and research. The programme brings together participants from over 40 universities and engineers representing more than 80 companies across the semiconductor and technology sectors, reflecting strong national interest and commitment to talent development in advanced chip design. Amirudin said the training, which focuses on front-end Integrated Circuit (IC) design, began earlier this year with the IC Design Part 1 course in Puchong, and positions Malaysia as a leading and sustainable front-end player in the semiconductor industry. As of now, Amirudin said the Selangor state government has committed between RM5 million and RM10 million annually to propel the front end of the semiconductor value chain. He also said the federal government, through the Economy Ministry, has increased its support to RM100 million from RM60 million. This underscores national-level confidence in the initiative, with total investments expected to exceed RM100 million over the next decade. Amirudin also said he believes the Arm On-Demand Programme will move Selangor and Malaysia from completely relying on foreign direct investment towards building leaders and startups that will one day transform into leading companies that invest and export overseas. "We must envision a technological ecosystem where we do not solely export, but a space and place where Malaysian companies can similarly move up the economic value chain to utilise and be consumers of these chips. "We must move towards owning the intellectual property so that these chips are not just labelled 'Assembled in Selangor', but 'Designed in Selangor', 'Made in Malaysia'," Amirudin said. Amirudin said these ambitions will be detailed in Selangor Plan 2, which is set to be launched next year. He expressed confidence that semiconductor and electrical and electronics engineering will be prioritised under the upcoming 13th Malaysia Plan, to be announced by Prime Minister Datuk Seri Anwar Ibrahim on July 31.
Times
3 days ago
- Business
- Times
SEC reforms tipped to ‘turn on the tap' for London Stock Exchange
The US market regulator is considering plans to change how foreign companies are listed in New York, which could provide a much-needed boost to the London Stock Exchange. Under ideas circulated by the Securities and Exchange Commission (SEC), foreign companies that are quoted in New York could be required to have a secondary listing in another location if they aren't already listed elsewhere. This demand, if enacted, could affect prominent companies including Arm, the Cambridge-based chip designer that is listed in New York. Foreign companies could also be subject to American accounting rules, which might have the effect of forcing them to move their entire domicile to the US. Lawyers at the global legal firm DLA Piper said the work under way at the SEC could 'turn on the tap' for London to attract secondary listings from these so-called foreign private issuers (FPIs). This would lift the London Stock Exchange, which has faced criticism for losing out on initial public offerings (IPOs) to New York. It has also been deserted by a number companies that have switched their listings to America in the quest for higher valuations. • How to save London's stock market, by LSE boss David Schwimmer Companies using the FPI rules are not subject to quarterly reporting requirements and can use international accounting standards to retain their New York listings. However, the SEC said it had devised these rules decades ago on the basis that they would be 'subject to meaningful disclosure and oversight in their home jurisdictions'. Before 2003, the vast majority of FPIs were European and subject to oversight by their domestic regulator. But 20 years later, the largest jurisdiction in terms of 'issuer incorporation' was the Cayman Islands, and the largest by headquarters was China, the SEC said. Rob Newman, co-head of capital markets for DLA Piper in the UK, said that if the changes were implemented, there could be repercussions for a wide range of companies. 'What we're talking about is companies [like] Arm Holdings, which chose to list in New York, doesn't have its stock traded anywhere else, and is currently relying on exemptions of being a foreign private issuer,' he said. Another company to take advantage of the FPI regime has been Virax Biolabs, a Glasgow-based biotech company that listed its shares on Nasdaq after incorporating in the Cayman Islands. In a letter to the SEC, Virax Biolabs' chief executive, James Foster, said: 'Our company was advised by our underwriter at the time of IPO to incorporate in the Cayman Islands as a means to facilitate a US listing. Our operational headquarters, executive leadership and business administration have always been located in the United Kingdom. We would not have adopted the Cayman structure but for this advice.' The SEC has asked for responses to its consultation by early September. It is unclear when it would make any rule changes.
