The ARM business model involves the designing and licensing of IP rather than the manufacturing and selling of actual semiconductor chips. We license IP to a network of Partners, which includes the world's leading semiconductor and systems companies. These Partners utilize ARM IP designs to create and manufacture system-on-chip designs, paying ARM a license fee for the original IP and a royalty on every chip or wafer produced. In addition to processor IP, we provide a range of tools, physical and systems IP to enable optimized system-on-chip designs.