The History and Evolution of ARM: From Acorn to Global Dominance

In 1978, Cambridge Processor Unit (CPU) was founded in Cambridge, later becoming Acorn Computer Ltd, which initially produced microcontroller systems like Acorn System 1.

Facing the BBC's demand for an affordable computer in the early 1980s, Acorn adopted the MOS 6502 processor for the BBC Micro, achieving widespread adoption in UK schools.

To overcome performance limits of existing chips, Acorn's engineers Sophie Wilson and Steve Furber designed the Acorn RISC Machine (ARM), introducing the Reduced Instruction Set Computer (RISC) concept.

ARM 1 was released, but Intel’s 80386 outperformed it, prompting Acorn to continue development while ARM chips were later integrated into subsequent BBC Micro models.

In 1990, Acorn spun out ARM Ltd. (Advanced RISC Machines) as a joint venture, adopting an IP‑licensing business model that sold processor designs, POP packs, and architecture licenses to other companies.

Key early licensees included GEC Plessey, Cirrus Logic, and Texas Instruments; the ARM6 powered Apple’s Newton PDA, and the ARM7 powered Nokia 6110, the first GSM phone with an ARM core.

Throughout the 1990s and 2000s, ARM’s low‑power, low‑cost designs dominated mobile devices, culminating in the launch of the iPhone (2007) and Android (2008), both built on ARM architecture.

ARM’s licensing model generated revenue through upfront fees (US$1‑10 million) and royalties (1‑2 %), enabling rapid ecosystem growth without heavy R&D costs.

After being acquired by SoftBank in 2016, ARM continued to expand its product families, including Cortex‑A (applications), Cortex‑R (real‑time), and Cortex‑M (microcontrollers), and introduced the security‑focused Cortex‑SC series.

RISC vs CISC: RISC simplifies instruction sets, improving power efficiency for portable devices.

ARM’s partnership strategy turned competitors into collaborators, fueling its market dominance.

The ARM ecosystem now powers billions of devices worldwide, from smartphones to IoT.