The Rise of ARM: How a Small Chip Designer Revolutionized the Mobile Market

When ARM was founded in 1990 as a small, scrappy joint venture in Cambridge, England, it seemed destined to remain in the shadow of industry giants like Intel and AMD. These companies dominated the semiconductor market with their state-of-the-art fabrication facilities and an aggressive push for higher performance. But ARM took a different path: one that would eventually lead it to capture the lion’s share of the mobile computing market and inspire an era of innovation that’s still shaping technology today. Here’s a deep dive into ARM’s incredible journey and the unique blend of business strategy, culture, and market positioning that helped it thrive.

1. The Humble Beginnings: A Fabless Company With a Big Vision

In 1990, ARM (Acorn RISC Machines) was born out of a collaboration between Acorn Computers, Apple Computer, and VLSI Technology. Acorn, known for its BBC Micro computer, needed a processor for its desktop machines that was powerful yet energy-efficient — a combination that conventional processors struggled to achieve. The result was the ARM architecture: a design built for efficiency and simplicity rather than sheer speed.

ARM didn’t invest in fabs (fabrication plants), an unusual choice at the time. Instead, it…