ARM share price: Facebook said to be eyeing ARM server chips

on Dec 17, 2013
Updated: Oct 21, 2019
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iNVEZZ.com, Tuesday, December 17: UK chipmaker ARM Holdings Plc (LON:ARM, NASDAQ:ARMH) could see its technology used by Facebook Inc (NASDAQ:FB) which is reportedly preparing to run production workloads on ARM-powered servers.

ARM’s share price has been little changed today, adding 0.20 percent to 997.50p in London and 0.38 percent to $48.69 on the NASDAQ where the company’s shares are listed as American Depository Receipts (ADRs). Facebook’s share price has climbed more than one percent on the NASDAQ.
**Facebook reportedly turning to ARM server chips**
The Register reported on Friday that a post by Facebook on the Hip Hop Virtual Machine (HHVM) blog indicated that the social network was implementing ARM processor support in its translation engine.

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“It’s also been crucial in our efforts to get hhvm running on ARM processors by isolating and reducing the amount of architecture-specific code we need to reimplement,” Facebook wrote in the blogpost. “Watch for an upcoming post devoted to our ARM port for more details!”
In another post on the social network’s career website, Facebook said that it was looking to hire an ARM server software engineer with experience in code generation and optimisation for ARM processors.

“We aim to evaluate further improving the efficiency of our web tier by porting HHVM to new server hardware platforms based on the power-efficient ARM,” the post said.
ARM Holdings licenses its designs to chipmakers such as Qualcomm, whose chips are used in Apple’s iPhone and Samsung’s Galaxy devices. The UK chip maker receives royalty on the sale of every chip which uses its technology.

The news that Facebook was considering a switch to ARM processors came on the same day that Bloomberg reported that Google (NASDAQ:GOOG) was considering ARM technology to build sever processors. The newswire on Friday quoted an unnamed source as saying that the search giant was looking into designing its own server processors using technology from ARM Holdings. (Tech giant to design its own chips?)

A shift to ARM architecture by Facebook and Google would be a blow to market leader Intel Corp (NASDAQ:INTC).

“Since ARM chips for servers are cheaper, consume less power and require lower cooling compared with Intel chips, they would be very attractive for Google,” Charles Stanley analyst Tom Gidley-Kitchin told Reuters.
**Potential shift to take two to three years**
Facebook’s shift to ARM-powered servers however would not happen overnight. The Register quoted Facebook technology strategist Vijay Rao as saying in October that the company felt “it’s going to take at least two to three years before the ARM ecosystem as well as ARM mature to a point where we can actually deploy it [in production]”.
**As of 15:03 UTC, buy ARM shares at 997.50p.**
**As of 15:03 UTC, sell ARM shares at 996.50p.**
**As of 15:04 UTC, buy Facebook shares at $54.88.**
**As of 15:04 UTC, sell Facebook shares at $54.87.**

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