Microchips. Pexels Images.
ARM Holdings is a British multinational semiconductor and software design company, now owned by SoftBank Group. ARM doesn’t manufacture chips but designs them and licenses the IP to other companies, who then incorporate ARM’s designs into their products. This business model has given ARM a vast global reach in the semiconductor industry.
The company’s global operation is structured around licensing its chip designs to hundreds of partners, including the world’s leading semiconductor and systems companies. These partners, in turn, produce and sell ARM-based chips. This vast network of partners has helped ARM’s architecture to become ubiquitous across the globe. ARM’s technology is at the heart of over 100 billion chips shipped to date, underscoring its vast impact on the worldwide tech industry.
ARM’s global reach is also facilitated by its international presence, with offices worldwide, including the United States, mainland Europe, and Asia, allowing it to support its local partners. This global network of offices supports licensing and design and plays a crucial role in research and development, ensuring ARM remains at the forefront of technology.
This article looks at ARM’s sales by country. For your information, ARM derives the majority of its revenue from only a handful of countries. The bulk of ARM’s revenue comes from only two regions, namely North America and Asia. The revenue from these regions alone made up over 90% of ARM’s total sales in fiscal year 2024.
Let’s look at the numbers!
Please use the table of contents to navigate this page.
Table Of Contents
Definitions And Overview
O2. How Does ARM Expand Globally?
Revenue By Region
A1. Revenue From The United States, China, Taiwan, And South Korea
A2. Percentage Of Revenue From The United States, China, Taiwan, And South Korea
Revenue By Region Growth Rates
B1. YoY Growth Rates Of Revenue From The United States, China, Taiwan, And South Korea
B2. 2-Year Growth Rates Of Revenue From The United States, China, Taiwan, And South Korea
Summary And Reference
S1. Summary
S2. References and Credits
S3. Disclosure
Definitions
To help readers understand the content better, the following terms and glossaries have been provided.
Revenue By Country: According to ARM’s fiscal year 2024 annual report, ARM defines its revenue by geographic region as revenue allocated to individual countries based on the principal headquarters of the customers.
Therefore, the geographical locations are not necessarily indicative of the country in which the customer sells products containing ARM’s technology IP.
How Does ARM Expand Globally?
ARM Holdings, now commonly referred to as ARM, has pursued global expansion through strategic partnerships, licensing agreements, and innovation in semiconductor technology. Here’s a brief overview of how ARM has achieved its global presence:
1. **Licensing Model**: Unlike companies that manufacture their chips, ARM designs the architecture for ARM processors and then licenses these designs to semiconductor companies worldwide. This model allows ARM to spread its technology globally without needing physical manufacturing facilities in different countries.
2. **Innovation and R&D**: ARM heavily invests in research and development to stay at the forefront of chip technology. This commitment to innovation attracts companies globally, ensuring ARM’s designs remain integral to various electronic devices, from smartphones to servers.
3. **Strategic Partnerships**: ARM has partnered with many tech companies worldwide. These partnerships broaden its reach and ensure its architectures are compatible with various software and other hardware components, making ARM a preferred choice for many manufacturers.
4. **Focus on Emerging Technologies**: ARM has positioned itself as a leader in emerging technologies such as the Internet of Things (IoT), autonomous vehicles, and 5G technology. By focusing on these growth areas, ARM ensures its relevance and expansion into new markets and industries around the globe.
5. **Global Talent and Presence**: ARM has research and development centres and offices in various countries across Europe, North America, and Asia. This global presence facilitates closer collaboration with clients and partners and allows ARM to tap into a vast pool of talent worldwide.
ARM has established a robust global presence through these strategies, making its technology foundational to the modern digital world.
Revenue From The United States, China, Taiwan, And South Korea
ARM-revenue-by-country
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The definition of ARM’s revenue by country is available here: revenue by country.
The United States is ARM’s largest source of income and has contributed an average of $1.2 billion in revenue to the company since 2022. In fiscal year 2024, ARM’s revenue from the United States reached a record figure of $1.4 billion, up 30% from a year ago.
China, excluding Taiwan, is ARM’s second largest revenue source, contributing US$600 million to the company on average over the last 3 years. In fiscal year 2024, China contributed nearly US$700 million to ARM in terms of net sales and revenue.
Not further behind is Taiwan, whose revenue topped over US$500 million in fiscal year 2024. Since 2022, Taiwa has contributed an average of $437 million in revenue to ARM.
South Korea is another Asian country which has significantly contributed sales to ARM. In fiscal year 2024, ARM earned US$300 million in revenue from South Korea, a significant growth compared to the US$241 million in fiscal year 2023.
Percentage Of Revenue From The United States, China, Taiwan, And South Korea
ARM-revenue-by-country-in-percentage
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The definition of ARM’s revenue by country is available here: revenue by country.
From the perspective of percentage, the United States has contributed the highest portion since fiscal year 2022, accounting for more than 40% of the total.
In fiscal year 2024, the sales percentage from the U.S. reached nearly 44%, the largest among all countries under comparison.
On the other hand, the revenue contribution from China topped 22% in fiscal year 2024, down slightly from 25% in fiscal year 2023 while Taiwan made up about 16% of ARM’s total revenue in fiscal year 2024.
South Korea’s sales contribution has been steadily rising since fiscal year 2022. As of 2024, the ratio hovered around 10% of ARM’s total revenue.
Therefore, ARM’s revenue from the U.S. and Asia alone made up over 90% of the company’s total sales in fiscal year 2024.
YoY Growth Rates Of Revenue From The United States, China, Taiwan, And South Korea
ARM-revenue-by-country-yoy-growth-rates
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The definition of ARM’s revenue by country is available here: revenue by country.
From the perspective of YoY growth rate, revenue from Taiwan appears to have the highest growth in fiscal year 2024, topping 45%.
Similarly, ARM’s U.S. revenue grew 30% in fiscal year 2024, while revenue from South Korea increased by 28% YoY, the third-most significant country.
ARM’s China revenue grew just 6% in FY2024, the smallest among all countries under comparison. However, China appears to have the best growth rate in fiscal year 2023, topping 38%.
2-Year Growth Rates Of Revenue From The United States, China, Taiwan, And South Korea
ARM-revenue-by-country-2-year-growth-rates
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The definition of ARM’s revenue by country is available here: revenue by country.
In terms of the 2-year growth rate which runs from fiscal year 2022 to 2024, China appears to top the chart. As shown in the chart, ARM’s revenue from China has increased by a massive 46% between fiscal year 2022 and 2024, while South Korea is slightly lagging, at 36% over the two-year period.
On the other hand, ARM’s revenue from Taiwan has increased by 21% since 2022 versus 14% from the U.S., the lowest among all countries under comparison.
Conclusion
To recap, ARM gets the majority of its revenue from the United States, with contribution topping over 40% since 2022.
China, together with Hong Kong, accounted for about 22% of the total revenue for ARM in fiscal year 2024. Taiwan alone made up 16% of the total in the same year.
ARM gets only about 10% of its revenue from South Korea.
References and Credits
1. All financial figures presented in this article were obtained and referenced from ARM’s SEC filings, quarterly and annual reports, earnings calls, presentations, etc., which are available in ARM Financial Reports.
2. Pexels Images.
Disclosure
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