Chip designer Arm has more than doubled revenue at its automotive business since 2020 as the UK-headquartered company seeks new avenues for growth ahead of a hotly anticipated public listing this year.

Dennis Laudick, vice-president of automotive go-to-market at Arm, said the pace of the segment’s growth — to power everything from electrification to advanced driver assistance systems (ADAS) and in-vehicle “infotainment” — had been faster than its other divisions such as smartphones and data centres.

That is because modern cars require a greater amount of chips, which are also more expensive than ever before. It is one of the few parts of the chip sector that is expected to suffer from severe shortages throughout this year because of strong demand.