Arm Holdings Limited is the owner and developer of the ARM architecture, which is utilized in 99% of smartphone CPU cores worldwide and holds a significant market share in other battery-powered devices such as wearables, tablets, and sensors. Arm licenses its architecture for a fee, offering various types of licenses tailored to the flexibility required by its clients. Companies like Apple and Qualcomm purchase architecture licenses, allowing them to modify the architecture and add or remove instructions to customize chips according to their specific needs. Other clients may opt to buy ready-made designs directly from Arm. Regardless of whether they are purchasing off-the-shelf designs or architecture licenses, every chip shipped incurs a royalty fee.