ARM Holdings, the Cambridge chip company spawned by Acorn and raised in a barn, has ousted the mighty Intel as world number one for the value of microprocessors shipped around the world, according to Business Weekly research.

This phenomenal achievement is arguably the greatest ever posted by a Cambridge based business.

ARM employs just 2 per cent of Intel’s workforce – just over 1,700 against the 84,000 headcount of the US giant – and has spent a tiny fraction of the millions of dollars invested by Intel in brand generation over the years. And ARM has pledged to continue investment in new technology and territories.

Intel’s turnover includes other products while ARM focuses entirely on chips. Sectorally ARM has now wedged into number two slot behind Intel while for pure chip sales, ARM is now firmly world number one.

Our analysis puts the crossover point at somewhere between $22.5bn and $25bn, with ARM surpassing Intel on a like-for-like basis at some point last year.

ARM chip royalties last year topped $226m, equating to inclusion of its chips in $22.6bn worth of product in 2008.

Chief executive Warren East told Business Weekly that ARM was set to roll out new products in the coming months and was exploring its options to expand its territorial reach, especially in Asia.

Development of ARM’s core architecture for a range of products is taking place in territories such as Vietnam where the Cambridge company can expand its sales without the cost of establishing a physical base.

East told me: “We are not immune to global economic vagaries but have kept a tight rein on costs and maintained a clear focus on future business opportunities. The ride so far has been exciting and there are exciting times to come for ARM.

“When you think of the respective headcounts and marketing budgets of the companies, for ARM to outpace Intel is an achievement in which we should be incredibly proud.

“We are constantly looking at new regions that hold potential for growth but if you look at how we have grown in India and China the expansion is in step with prevailing global economic conditions – it’s not a case of us trying to force the pace.

“We are still looking at potential new growth territories – in Asia, for example – and development is taking place on products featuring ARM technology in countries like Vietnam.

“It doesn’t make economic sense for us to open an operation there at present but we can serve the market through distributors. We used the same rationale in Israel and gradually put down roots there, just as we serve the Korean market in a similar fashion.

“I joined ARM four years after its birth and have been with the company for 16 years – the last eight as CEO. To see its progress from a young company starting out with huge ambition to a business based in Cambridge gaining such global traction is a matter of pride for everyone who has been involved over the years.

“We are especially proud that our progress has been achieved from a Cambridge base.”