Microsoft, ARM join together in chip-technology agreement

Microsoft will license chip architecture from British technology company ARM, the two companies said Friday.

Although neither company was specific, it appears the agreement involves technology aimed at devices using Microsoft Windows.

"The announcement refers to working together on Windows Embedded and Windows Phone," said Antonio Viana, an executive board member of ARM Holdings, based in Cambridge, England. "Microsoft has put themselves in a position where, now with an architectural license, they're in a better place to enhance development opportunities on ARM."

He declined to give more details on what Microsoft devices the ARM technology would end up in. Microsoft also declined to comment further on the agreement.

The two companies have worked together since 1997, but now Microsoft can help develop a processor based on ARM designs. Viana said under the new agreement, "the partner has the right to create their own implementation," as opposed to just licensing a specific implementation. Three other chip makers have publicly said they are licensing ARM's architecture, he said, including Marvell, Qualcomm and Infineon.

The announcement fueled speculation over what kind of device Microsoft might want to build using ARM technology, including upcoming smartphones or tablets. Apple's iPad uses a custom-designed chip that some believe is based on ARM's technology.

The news sent shares of ARM shooting up 12 percent Friday to close at 353.30 pence per share. Microsoft stock closed down 3 cents at $25.81 per share, a day after reporting a 48 percent profit jump and record sales.

Sharon Pian Chan: 206-464-2958 or schan@seattletimes.com