ARM In Preliminary Talks With Google On Smart TV Cooperation

Very significant move from ARM into connected TVs. Not sure Google is the correct partner though. (reproduced from the Wall Street Journal 111810)

ARM In Preliminary Talks With Google On Smart TV Cooperation

By Paul Mozur and Lorraine Luk 
   Of DOW JONES NEWSWIRES 
 
TAIPEI (Dow Jones)--U.K. chip designer ARM Holdings PLC (ARM.LN) is in preliminary discussions with Google Inc. (GOOG) on a potential cooperation deal related to Google TV, ARM President Tudor Brown said Thursday.

Search giant Google earlier this year unveiled Google TV, an Internet-connected TV that allows consumers to watch and search traditional television programming and online video through one interface. The software, which will be available through a separate box or through some Internet-connected TVs made by Sony Corp. (6758.TO), is due to launch this fall. Google said in May it is cooperating with chip giant Intel Corp. (INTC) on the chips used for Google TV.

Brown refused to elaborate on what kind of cooperation is being discussed with Google.

Google spokeswoman for Taiwan and Hong Kong, Caroline Hsu, said the company doesn't comment on rumors or speculation.

Brown said he thought Google decided to use Intel processors in Google TV to get the product to the market quickly, but added "if Google is to meet the mainstream needs of the market, its televisions will need to be made with lower energy and lower cost processors."

He also said ARM's 30% share of the digital television market is growing and continues to be a point of focus for the company.

Speaking at a technology forum in Taipei, Brown said talk of the company being a takeover target "makes no sense."

ARM's chip designs are used in Apple Inc.'s (AAPL) ipad which has created a buzz for tablet PCs in the global market. Other PC makers have launched or are scheduled to sell tablet PCs to take a share of this fast-growing market.

Brown said global demand for tablet computers will remain strong next year. He said global shipments of tablet PCs will likely rise by 30 million-60 million units next year.

-By Paul Mozur and Lorraine Luk, Dow Jones Newswires; 8862-25022557;[email protected]