SemiconductorsFEATURE

Arm vs RISC-V: How a Licensing Empire Meets an Open Instruction-Set Challenger

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EffectStory 編輯部Editorial Team
Published · Updated
Arm's paid licence-plus-royalty model has produced over 350 billion shipped chips and 22 million developers, while RISC-V International offers a royalty-free open ISA, focuses on select verticals, and unified its ecosystem in late 2024 with the RVA23 profile.

What is an instruction set architecture, and why does it matter for chip design and software?

An instruction set architecture (ISA) is the abstract interface between a processor's hardware and the software it runs, as Arm defines itCITE:E1. This interface is the layer that determines how a chip and the code running on it communicate, which is why control over an ISA carries weight across the entire chip industry.

How does Arm's licence-plus-royalty model underpin its market power, and how large is its ecosystem?

Arm charges chip makers an up-front licence fee for access to a design, then collects a royalty on every chip shipped once that design goes into production, with the royalty typically based on the price of the chipCITE:E2. Arm describes the incorporation process as one that often takes three to four years between licensing and the point a chip actually shipsCITE:E2. Built on this model over time, Arm's compute platform has shipped over 350 billion chips and reaches over 22 million developers, a footprint Arm says positions it to extend a common architecture and ecosystem from cloud infrastructure to the edgeCITE:E3.

How does RISC-V's open, royalty-free standard contrast with Arm, and what design freedom does it promise?

RISC-V International makes its ratified ISA and extensions royalty-free and open building blocks, a structural contrast with Arm's paid licence-and-royalty modelCITE:E4. RISC-V International states it is wholly committed to design freedom, choice, and flexibility, and that it supports open architecture extensions to the RISC-V ISACITE:E5. Where Arm's model charges for access to a fixed design, RISC-V International's model is built around open extensibility of the base ISA itselfCITE:E4CITE:E5.

Why is RISC-V pursuing focused vertical markets instead of a head-on fight across the entire chip industry?

RISC-V International says it is concentrating on verticals where RISC-V holds distinct advantages rather than competing across the whole market at once. RISC-V International CEO Andrea Gallo named automotive, data center, edge AI, security, and space as the verticals where the organization is focusing its effortsCITE:E6.

How does an open ISA avoid fragmentation, and what role does the RVA23 profile play in unifying software targets?

RISC-V International ratified the RVA23 profile at the end of 2024 to give its ecosystem a common baseline for application processors running operating systems such as LinuxCITE:E7. Gallo described the ecosystem rallying around RVA23 in 2025 as a major step forward, noting that the profile defines a standard set of architectural features so that operating systems, compilers, libraries, and applications all have one clear target to aim atCITE:E7. For an open, extensible ISA, that single common baseline is the mechanism RISC-V International points to for containing the fragmentation risk that comes with allowing open architecture extensionsCITE:E5CITE:E7.

What this means

The two organizations are running different plays on the same layer of the stack. Arm's over 350 billion shipped chips and over 22 million developersCITE:E3 are the output of decades under a licence-fee-plus-royalty model where customers pay Arm for access and Arm collects a royalty per chip once shipments beginCITE:E2. RISC-V International's royalty-free, extensible ISACITE:E4CITE:E5 takes the opposite starting position, and rather than contesting Arm's installed base directly, RISC-V International is concentrating on automotive, data center, edge AI, security, and spaceCITE:E6, while using the RVA23 profile ratified at the end of 2024 to give that open, extensible model a common software targetCITE:E7.

📊 Evidence

FAQ

What is an instruction set architecture, and why does it matter for chip design and software?

An instruction set architecture (ISA) is the abstract interface between a processor's hardware and the software it runs, as Arm defines itCITE:E1.

How does Arm's licence-plus-royalty model underpin its market power, and how large is its ecosystem?

Arm charges chip makers an up-front licence fee for access to a design, then collects a royalty on every chip shipped once that design goes into production, wit…

How does RISC-V's open, royalty-free standard contrast with Arm, and what design freedom does it promise?

RISC-V International makes its ratified ISA and extensions royalty-free and open building blocks, a structural contrast with Arm's paid licence-and-royalty mode…

Why is RISC-V pursuing focused vertical markets instead of a head-on fight across the entire chip industry?

RISC-V International says it is concentrating on verticals where RISC-V holds distinct advantages rather than competing across the whole market at once.

📎 Sources

  1. arm.com
  2. examples.integratedreporting.ifrs.org
  3. newsroom.arm.com
  4. riscv.org
  5. riscv.org

Related data

Author's TakeEffectStory 編輯部

The comparison here isn't feature-for-feature — it's business model versus business model. Arm's over 350 billion shipped chips and 22 million developers are the compounding output of a licence-fee-plus-royalty structure that has run for decades; that installed base and developer familiarity are themselves the moat, independent of any single technical edge. RISC-V International isn't trying to out-scale that in one move — it is deliberately narrowing to automotive, data center, edge AI, security, and space, and betting that a royalty-free, extensible ISA plus a unifying baseline like RVA23 can build defensible depth in those verticals before asking developers to standardize on one target the way Arm's ecosystem already has. The concrete thing to watch next is how much RVA23-compliant silicon and tooling actually ships into those named verticals — that adoption pace, not the openness of the standard itself, is what will show whether the vertical-focus strategy is converting into real share.

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EffectStory 編輯部Editorial Team

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