By Max Clarke

ARM Holdings (LSE: ARM; NASDAQ: ARMH) have seen half year profits surge 28%, buoyed by a surge in royalty payments for their chip designs.

"In the first half of 2011, we have seen strong license revenues driven by an increase in design activity around ARM technology across a broad range of end applications,” said Warren East, ARM CEO. “Major semiconductor vendors and consumer electronics companies are making long-term commitments to using ARM technology in their future product developments, underpinning growth in ARM’s long-term royalty revenues.”

The Cambridge-based company, which designs silicon semiconductor microchips for a range of popular electronics including Apple’s iPhone, licensed a total of 29 processor designs which have been shipped transferred to more than 1.1bn chips over the period, many of which came from ARM’s Cortex-A series.

Microsoft are developing the latest browser, IE10- designed to run with their revolutionary Windows 8- in conjunction with the UK business, likely to generate a revenue boost at the time of the platform’s scheduled release in the final quarter this year.

“As the addressable market for ARM technology grows, we continue to invest in the development of innovative technology, whilst simultaneously increasing revenues, profits and cash," continued East.

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