Will ARM Power the Internet of Things?

Source: Thinkstock

Source: Thinkstock

British technology company ARM (NASDAQ:ARMH), whose chips and tech are the basis of many smartphones, announced a new CPU factory in Taiwan, reported GigaOm. The chips from this new factory will be used to create new products for the Internet of Things, putting it ahead of rival Intel (NASDAQ:INTC).

It is a tale of two processor chip makers. ARM’s products have been used in a wide variety of products, but the British firm is best known for its technology being used in smartphones. Intel’s chips are also used in a wide variety of products too, but are best known for being used in computers, ranging from desktops to netbooks. As wearable technology and other Internet-centric products come into the market, demand for chips has grown. ARM’s new facility is being built in part to supply that demand.

“The new design center will have a particular focus on the development of ARM Cortex-M processors, which are the market-leading design choice for IoT products. Establishing a new, world-class CPU design team in Taiwan will allow us to work even more closely with key regional partners seeking to accelerate this market,” said Simon Segars, chief executive officer of ARM in the press release announcing the new facility.

The new facility is set to be operational by this summer. About 40-50 people will be hired from the local population. Many technology firms are located in this region, making the infrastructure good for ARM to launch a new facility. Intel has a facility in Northeastern China.