Arteris Emerges Strong in 2014 As Semiconductor Markets Diversify

For 2014, the team at Arteris is convinced that FlexNoC interconnect fabric IP will play a greater role in the most advanced System-on-Chip (SoC) projects in the industry. To paraphrase the Great One, Arteris is not only playing where the puck is – mobility – but will play where the semiconductor industry is going to be – wearables and the Internet of Things.

The flexibility and time-to-market advantages that FlexNoC provides will only become more important in the coming months and years as designs continue to push on all the SoC metrics such as lower power, higher performance and ease of derivative design creation. We will continue to enable designers to produce the most innovative System-on-Chip products and allow them to more quickly achieve volume leadership in some of the most exciting and fastest-growing markets in the electronics industry.

As you read this, Arteris is building new innovations that function seamlessly with FlexNoC to meet the requirements for next generation of SoC development. We are in a strong position to build functionality and increase our value to SoC designers. We’re convinced that forthcoming enhancements will yield not only better SoCs, but also better, more intelligent systems.

Arteris Network-on-Chip (NoC) technology has proven its technical superiority in the mobility and consumer electronics SoC markets, but the coming year promises greater end-market diversity in the semiconductor industry. Emerging opportunities under the IoT umbrella hold greater growth opportunities for the industry as electromechanical systems are replaced with electronic systems. Already, we’re seeing successful implementation of FlexNoC technology in automotive networks, wearable systems and 3D SoCs. While we remain committed to the mobility market, we see more and more companies adopting a single SoC platform strategy to address multiple markets, and these companies will increasingly require the flexibility and time-to-market advantages that FlexNoC affords.

While many have wondered what will happen to Arteris after its recent transaction with Qualcomm, I can assure you that FlexNoC has a long and fruitful life ahead and our company will continue to be the industry’s leading supplier of network-on-chip technology. In fact, Arteris is now 100% owned by our employees. We are free to pursue our goal of delivering to customers the most innovative on-chip interconnect technologies without regard to the needs of outside investors.

Qualcomm had been one of the industry leaders in adopting FlexNoC technology before it approached Arteris with a proposal for a unique business agreement last year. Qualcomm acquired the ability to implement FlexNoC technology to meet its internal needs. Arteris retains the original source code and ability to license and support FlexNoC, as well as a mutually agreed-upon product roadmap with specific engineering deliverables from the former Arteris engineering team now at Qualcomm. Customer confidential information remains separate and protected from Qualcomm or any other third party, just as it was in the past. Furthermore, Qualcomm has no ownership of or financial interest in Arteris.

In essence, Arteris starts 2014 fresh with an established revenue stream of licenses and royalties, a satisfied customer base, an experienced team and a proven product that becomes more invaluable as process technology continues to migrate from 40 nanometers to 28nm, 20nm and smaller. Already, our approach is resonating in the market as loyal customers renew and new ones adopt FlexNoC for mobility, consumer electronics and a growing variety of market segments.

With the events of the recent past behind us, and a bold future in front of us, Arteris has never been in a better position to provide for the growing needs of SoC designers. With Arteris FlexNoC IP technology serving as our window into some of the most difficult-to-solve SoC development problems in the industry, we are building new innovations that will enable the next generation of semiconductor platforms.

Warmest Regards,

K. Charles Janac, President and CEO, Arteris Inc.