Jane Lanhee Lee

SAN FRANCISCO (Reuters). SoftBank Group Corp.’s chip technology company Arm Ltd has reported record revenue for the year 2021. Rene Haas, Chief Executive of SoftBank Group Corp. told Reuters his business for new chips designs suggests a bright outlook.

SoftBank will take the British tech firm public. It was stopped by regulatory hurdles from being sold to Nvidia (NASDAQ) Corp.

Arm, which creates the fundamental blueprint that is used in designing chips, saw revenue of $2.7 Billion last year. That’s 35% higher than the prior year. Revenue from licensing increased 61% to $1.13billion and royalty payments, which track the number of chips made using Arm technology, rose 20% (20%) to $1.54billion.

Haas claimed that licensing is about arm companies paying money to Arm for designing chips of the future.

When asked about his revenue outlook, he replied that he had never made more than a billion dollars. It’s also a great indicator of how much demand there is for the product.

Haas stated that Arm technology was used to ship 29.2 million chips last year and nearly 8 billion during the fourth quarter. Arm’s efforts to focus on the automobile sector was paying off three to four years back, he said. The revenue generated from that market more than doubled in 2013 thanks to electric cars and increased computing power.

Haas stated that Arm’s automobile business was “probably better” if there had been more supply.

Haas did not discuss Arm’s potential market value. Nvidia, which had offered to buy Arm for as high as $40 billion in September 2018, declined to discuss the potential value. SoftBank acquired it for $32B.

Haas also stated that Arm resolved the public dispute over its Chinese joint venture and fired former Chief Executive Allen Wu. Arm China is about 20%, according to him.

“One thing is I can confirm, we had amazing results this year. Without the China JV’s success,” he stated.