ARM plays down threat from Intel's 'revolutionary' chip

Shares in the Cambridge-based group, which designs microchips for Apple and the rest of the world’s smartphone manufacturers, tumbled heavily on Wednesday as investors waited for an announcement from Intel.

After the London markets closed, the US electronics giant said it will start producing and installing 3D transistors to improve the speed and power of smartphones and tablets across the world.

But on Thursday ARM shares recovered, rising 9 on the day to 567p.

Speaking to The Telegraph, Ian Drew, ARM’s executive vice-president of marketing, said: “For us, this announcement has come as no surprise as we know that Intel, and the industry as a whole, has been working on this technology for a number of years. You always have to watch the competition, but we are confident that the strength of the ARM ecosystem is robust enough to compete.”

Intel’s new chips will allow more processing power to be crammed into smaller spaces, cost less and use less power. They are set to allow the exponential growth in computing power to continue for another generation.