Cambridge ‘chip mates’ ARM and Frontier Silicon are obliterating the global competition as they drive millions of new product sales in the digital revolution.

Microprocessors either designed by ARM or manufactured and shipped by Frontier have racked up all-time record sales and are flooding into practically every new product on the marketplace.

And both companies are predicting a further bonanza in 2010.Frontier, a leading supplier of DAB digital radio technology with a world-class design hub in Cambridge, has reached a record 10 million sales in DAB systems worldwide. Its receiver chips are at the heart of the systems.

Now chief executive, Anthony Sethill, says sales will double in the next three years driven by new market growth. So Frontier will reach 20 million sales in less than half the time it has taken to hit 10 million.

Japan’s audio brands and carmakers are key buyers, justifying Frontier’s recent decision to open offices in Tokyo. ARM, whose IP is in both Apple’s new iPad and Plastic Logic’s QUE e-reader, says partners have now shipped some 17 billion ARM-based products.  

Its low power processors span a broad range of performance points, enabling partners to design innovative solutions across market segments.

CES showcased the breadth of ARM-based products outside of mobile handsets, from the Lenovo Skylight Netbook to auto infotainment systems like the Ford MyFord Touch, and even interesting application concepts like Android-based microwave and washing machine interfaces from Touch Revolution.  

ARM’s share price soared another four per cent to 197.40 as it posted its Q4 and full year results to December 31 and CEO Warren East said revenues could top market expectations this year.

With a market cap of over £2.53 billion, ARM saw Q4 revenue fall 10 per cent year-on-year to £85.2m; pre-tax profit was just three per cent lower at £32.3m.

The company is expected to rejoin the FTSE 100 on Monday on the back of recent growth in its share price.

ARM took full year revenue to £305m – a rise of two per cent year-on-year, although pbt fell four per cent to £96.8m.

Warren East said that ARM had continued to outperform the semiconductor industry in Q4 and grow market share. With widespread predictions that the industry will see improving conditions this year, he expected group dollar revenues for the full-year to be at least in line with current market expectations at $553m (£347.13m) – implying 13 per cent growth.  ARM was sufficiently buoyed to hoist the full year dividend by 10 per cent.