Connected and driverless cars are a "great opportunity" for the chipmaking industry, according to the chief executive of British semiconductor company ARM Holdings, after reporting a surge in earnings.
ARM, which is a supplier to many device manufacturers including Apple, reported a 14 percent rise in revenue in the fourth quarter of 2015 to $407.9 million. Profit before tax was up 17 percent to £138.7 million ($200.7 million) year-on-year. Royalties for its technology surged 31 percent on the year.
Speaking to CNBC after the results, ARM CEO Simon Segars, said that the increasing amount of chips in cars is a big focus for the company.
"One particular interest right now that's growing strongly is automotive. We look at the future of that and see the potential for a hundred times growth in computing power in cars which is pretty similar to what we've seen over the past five years in smartphones," Segars said.
"In terms of the market that we can address in 2020, we see that as a $15 billion silicon market which when you do the maths, works out to about $150 of silicon per car. Now you compare that to a smartphone…its' about seven to eight times the silicon content, so great opportunity to us."
Chipmakers are looking for new streams of revenue as the sales of smartphones start to slow -- the auto industry has shown much promise.