ARM share price rises on FTSE 100 after Microsoft agree licensing deal

ARM Holdings, the chipmaker, has risen 1.84 pct on the FTSE 100 following its licensing arrangements with No 1 software maker Microsoft Corp, who plan a move towards 'bottom-up' instead of 'top-down' thinking after the failure of Windows operating systems to meet expectations.

Despite the success of Windows 7, Microsoft, who are very much a software company based on other hardware such as Samsung or HP-produced PC's, the Richmond-based company are determined to beat Apple's resurgence of its own iPad and iPhone PC's which use Apple designed chips in them.

The move could lead to Microsoft designings its own processors for its smartphones and gaming consoles - and even PC's.

"Without being an expert it is difficult to judge, but our impression is that ARM's Cortex A9 applications processor, for which products will soon be launched (and which can be used on a multi-core basis and, importantly, works with Flash 10.1), is competitive with Intel chips in eg netbooks for a wide range of applications." said Charles-Stanley analyst Tom Gidley-Kitchin.

Shares in ARM rose 6.50 pence (1.84 pct) on the news whilst the FTSE 100 remained broadly flat.