ARM shares rise on report Google may use its chip designs

British chip designer ARM Holdings Plc's shares rose as much as 5.7 per cent after Bloomberg reported Google may use ARM's technology to design its own server processors.

A deal would speed up ARM’s push into the server market, where it has been a late entrant.

ARM's chief executive, Simon Segars, said in March after taking the helm that he saw big opportunities in servers, an area where the company was just getting started.

ARM licenses its designs to chipmakers such as Qualcomm and Texas Instruments, whose chips are used in the Apple iPhone and Samsung Electronic's Galaxy devices.

ARM, which receives royalty on the sale of every chip that uses its technology, declined to comment on the report. – (Reuters)