A 33pc rise that easily outstrips the 20pc average for the semi-conductor industry. Who says we don’t make things anymore? Almost 98pc of mobile phones now have an Arm chip inside them, with most phones having more than one. Drop that expensive iPhone, for example, and you will find at least five Arm chips inside.
Really not the best of examples. For of course you won’t find any chips at all “made by ARM” inside an iPhone. For, famously, ARM doesn’t in fact “make anything”. They make the designs for other people to make things.
I agree absolutely that ARM is an excellent addition to our economy. Those 1,700 highly paid and very bright people are adding value like Billy Oh. They’re making us all vastly richer through the value their designs produce (and by far, far, the majority of that value flows to us as consumers of the products containing the chips. By one analysis 97% of the value flows to us and only 3% to those innovators.).
But the point is that they don’t make anything and yet still add this huge value.
Which leads us to a couple of interesting points: you don’t have to manufacture things in order to create value. And you don’t need to consume physical resources in order to create value. Thus it isn’t true that only with manufacturing can you have a strong economy nor is it true that GDP growth (or economic growth if you prefer) is constrained by the finite amount of physical resources available on a finite planet.
That ARM doesn’t make anything is disproof of two very common misconceptions.