Arteris, Inc. provides semiconductor interconnect intellectual property (IP) and IP deployment solutions in the Americas, the Asia Pacific, Europe, and the Middle East. The company develops, licenses, and supports the on-chip interconnect fabric technology used in System-on-Chip (Soc) designs and Network-on-Chip (NoC) interconnect IP. Its products include FlexNoC, a silicon-proven interconnect IP product; FlexNoC Resilience Package, which provides on-chip data protection; Ncore, a silicon-proven and cache coherent interconnect IP product that provides scalable, configurable, and area efficient characteristics; CodaCache, a last-level cache semiconductor IP product; and Physical interconnect aware NoC optimizer, a software tool that estimates physical layout effects during the architecture and logic development stages of an SoC interconnect design; The company also offers FlexWay for IP subsystem interconnect; FlexPSI for All-digital inter chip link; and FlexNoC Physical for linking physical placement and routing tools. In addition, it provides IP deployment software solutions, including specification, design, documentation, artificial intelligence (AI) package, design data intelligence, and harmony trace. The company serves customers in the automotive, AI/machine learning, 5G and wireless communications, data centers, consumer electronics, and other markets. Arteris, Inc. was founded in 2003 and is headquartered in Campbell, California.
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Here are 1-3 brief analogies for Arteris (AIP):
- Arteris is like Arm Holdings for the internal communication pathways of a chip, providing the foundational IP to connect various components within a System-on-Chip.
- Arteris is like Cisco for the internal network of a chip, building the "plumbing" that allows different parts of a complex semiconductor to communicate efficiently.
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- Highway Concessions (Infrastructure Management Services): Management, operation, and maintenance of toll roads and related infrastructure across Brazil.
- Hospital Operations (Healthcare Services): Provision of a wide range of healthcare services through its network of hospitals.
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Arteris (AIP) sells primarily to other companies, specifically semiconductor companies and original equipment manufacturers (OEMs) that design System-on-Chips (SoCs). While Arteris generally does not publicly disclose the specific names of its individual major customers due to the confidential nature of IP licensing agreements, information from past press releases and public statements indicates the following companies have used Arteris's interconnect IP:
- Renesas Electronics Corporation (TYO: 6723)
- NXP Semiconductors N.V. (NASDAQ: NXPI)
- Baidu, Inc. (NASDAQ: BIDU)
These companies represent key segments of Arteris's market, including automotive, artificial intelligence (AI), and general-purpose semiconductor design.
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K. Charles Janac, Chairman, President and Chief Executive Officer
K. Charles Janac has served as the President and Chief Executive Officer of Arteris and on its board of directors since July 2005, and as Chairman of the board of directors since August 2007. Arteris, Inc. was founded in 2003 by Philippe Boucard and two other engineering executives.
Nicholas B. Hawkins, Executive Vice President and Chief Financial Officer
Nicholas B. Hawkins is the Executive Vice President and Chief Financial Officer of Arteris. He held the position of Principal Accounting Officer, Vice President, and Chief Financial Officer as of October 2021. Hawkins has been involved in recent stock sales under a pre-arranged 10b5-1 trading plan, including transactions in April, August, and October of 2025.
Laurent Moll, Executive Vice President of Engineering and Chief Operating Officer
Laurent Moll serves as the Executive Vice President of Engineering and Chief Operating Officer at Arteris. He also held the title of Chief Operating Officer as of October 2021. Recent insider transaction data shows an intent to sell stock in November 2025 and sales in October 2025.
Michal Siwinski, Executive Vice President, Chief Product Officer and Chief Marketing Officer
Michal Siwinski is the Executive Vice President, Chief Product Officer, and Chief Marketing Officer at Arteris. He was listed as Chief Marketing Officer in late 2024.
Paul L. Alpern, Executive Vice President, Chief Legal Officer and Corporate Secretary
Paul L. Alpern holds the position of Executive Vice President, Chief Legal Officer and Corporate Secretary at Arteris. He was also listed as Executive Vice President and General Counsel as of October 2021. Alpern has engaged in recent stock sales in November and October of 2025.
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Key Business Risks for Arteris (AIP)
- Intense Competition: Arteris operates in a highly competitive semiconductor intellectual property (IP) market, contending with both established industry players like Arm and Cadence, as well as emerging companies and the internal IP divisions of larger semiconductor firms. This competitive landscape can adversely affect pricing, market share, and overall profitability. Additionally, geopolitical shifts, industry consolidation, and increasing international competition pose threats to revenue growth and market share.
- Reliance on Key Customers and Customer Product Delays: A significant portion of Arteris's revenue is derived from a small number of key customers. The loss of one or more of these major customers could lead to a substantial decrease in revenue. Furthermore, the company's royalty revenue is directly dependent on its customers successfully bringing their chips to market and achieving volume production. Significant delays in product launches by major customers could therefore postpone this highly profitable revenue stream.
- Profitability Challenges: Despite experiencing revenue growth, Arteris has consistently reported operating losses and remains unprofitable, which has led to skepticism among analysts regarding its ability to achieve profitability. For instance, in fiscal year 2024, the company reported an operating loss of $27.9 million, translating to an operating margin of -31.0%. The challenge lies in translating its growth and record contract values into sustainable earnings.
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HTML output:
Arteris (AIP) is expected to drive future revenue growth over the next 2-3 years through several key factors:
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Expanding Demand in Artificial Intelligence (AI) and Autonomous Driving: Arteris is strategically positioned within the booming AI and autonomous driving sectors, which are significant drivers of increased demand for its semiconductor interconnect IP. AI applications have consistently accounted for a substantial portion of licensing dollars, and the company is securing new customers in the automotive sector for next-generation electric vehicles and high-end designs. The acceleration of AI adoption across data centers, autonomous driving, and edge devices, coupled with the increasing complexity of systems, is fueling demand for Arteris's Networks-on-Chip (NoC) IP technology.
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Growth in Remaining Performance Obligations (RPO) and Annual Contract Value (ACV) plus Royalties: Arteris has consistently reported strong year-over-year growth in its Annual Contract Value (ACV) plus royalties and Remaining Performance Obligations (RPO). ACV plus royalties reached record highs of $74.9 million in Q3 2025 (up 24% year-over-year) and $65.1 million in Q4 2024 (up 16% year-over-year). RPO also achieved record levels, exceeding $100 million for the first time in Q3 2025 (up 34% year-over-year) and reaching $88.4 million in Q4 2024 (up 22% year-over-year). These metrics represent contracted future revenue and a robust pipeline, indicating sustained top-line growth as contracts convert to revenue. The company also anticipates accelerated royalty growth by 2028.
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New Product Innovations and Advanced Technology Adoption: Arteris's continuous development and enhancement of its Network-on-Chip (NoC) interconnect technology, including new products like the FlexGen Smart NoC IP, are significant growth drivers. The FlexGen Smart NoC IP is noted for its ability to deliver up to ten times more engineering productivity, lower power consumption, and features a 30% higher average selling price. The company's technology is also increasingly being adopted for chiplet-based, multi-die System-on-Chip (SoC) architectures due to its superior power and performance, presenting a substantial market opportunity.
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Expansion of Customer Base and Strategic Partnerships: Arteris has been successful in expanding its customer base, securing new customers, including market-leading global automotive OEMs. The company has also deepened its relationships with top-tier technology companies through strategic partnerships and collaborations, such as with AMD and Altera, and by joining consortia like the UALink Consortium. These new and expanded customer relationships and partnerships are crucial for increasing the adoption of Arteris's system IP products and driving future license and royalty revenue.
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Accelerated Outsourcing of System IP and Increasing SoC Complexity: There are promising signs of accelerated interest from major customers in increasing their outsourcing of system IP products to Arteris. This trend, coupled with the growing complexity of automotive electronics systems and the demands of AI and machine learning applications requiring high-bandwidth, low-latency interconnects, creates a strong tailwind for Arteris's technology. The company's expertise in managing on-chip communications and IP block deployments in complex SoC designs positions it to capitalize on this increased outsourcing and technological sophistication.
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1. Share Repurchases
- Arteris did not repurchase any shares for the years ended December 31, 2023, and 2022.
- In 2024, Arteris, Inc. reported net cash used for financing activities of $14.7 million, which was mainly due to stock repurchases. [cite: 31, previous turn]
2. Share Issuance
- As of December 31, 2022, Arteris had 34,625,875 shares of common stock outstanding.
- By December 31, 2023, the number of issued and outstanding shares increased to 37,518,583.
- As of December 31, 2024, the company had 40,724,936 shares of common stock issued and outstanding. As of October 28, 2025, common shares outstanding further increased to 43,683,773.
3. Outbound Investments
- In January 2023, Arteris, Inc. completed the acquisition of Semifore, Inc., a provider of hardware/software interface technology, to accelerate system-on-chip development and integration automation.
- The specific financial terms of the Semifore acquisition were not disclosed and the acquisition was not expected to be material to Arteris' 2023 revenue or earnings.
4. Capital Expenditures
- Arteris' capital expenditures for the twelve months ended December 31, 2023, were approximately $1.310 million for purchases of property and equipment.
- For the twelve months ended December 31, 2024, capital expenditures amounted to approximately $1.326 million, primarily for purchases of property and equipment.
- For the upcoming year 2025, projected capital expenditures are approximately $1 million, increasing to $2 million for 2026. [cite: 10, previous turn]
