Arteris licenses semiconductor IP to chip designers, primarily its Network-on-Chip (NoC) interconnect IP — the technology that manages data movement between functional blocks inside a system-on-chip (SoC). Think of it as the internal highway system of a chip. Arteris sells to semiconductor manufacturers, fabless chip designers, hyperscale cloud providers building custom silicon, and automotive OEMs, with customers including AMD, NXP, Mobileye, Renesas, and Infineon. Beyond its core NoC products (FlexNoC/FlexGen for mainstream SoCs and Ncore for cache-coherent multi-processor designs), Arteris offers SoC Integration Automation software that automates the packaging and connectivity of IP blocks within a chip design, and recently added hardware security verification software via its January 2026 acquisition of Cycuity. Arteris earns revenue two ways: upfront or ratable license fees per chip design (targeting ~$1M per complex SoC project), and per-unit royalties once a licensed chip enters mass production — typically 3–6 years after design start. This creates a royalty stream that lags design activity but grows over time. The business runs at ~90–92% gross margins, though heavy R&D spending (~71% of revenue) leaves the company near breakeven. Key growth drivers include AI chip complexity (AI designs represented over 50% of recent licensing dollars), chiplet architectures (each die requires a separate license), and expanding automotive and data center demand.