Nov 22, 2010 09:44 GMT  ·  By

With Intel doing its best to come up with an Atom chip efficient enough to challenge ARM on its own turf, the latter seems to think the opposite will happen because Intel has what it calls a wrong business model.

The ARM architecture has more or less owned the market for mobile phones and other handsets and portable devices for many years.

Now, Intel is doing its best to create an x86 CPU capable of rivaling the energy efficiency that ARM processors are known for.

ARM, on the other hand, seems to believe that not only will Intel fail in its push, but ARM will eventually kill the microprocessor altogether.

Besides being sure it will keep dominating the mobile market, ARM sees PCs and servers as possible business outlets as well.

“The reason why ARM is going to kill the microprocessor is not because Intel will not eventually produce an Atom that might be as good as an ARM, but because Intel has the wrong business model. People in the mobile phone architecture do not buy microprocessors,” reportedly said Hermann Hauser, a co-founder of ARM, in an interview.

“So if you sell microprocessors you have the wrong model. They license them. So it’s not Intel vs. ARM, it is Intel vs. every single semiconductor company in the world," he added.

Of course, it should be noted that, while less power hungry, ARM doesn't have any 64-bit chip capable of rivaling those from Intel or Advanced Micro Devices.

Intel did seem to have something to say on ARM's outlook, and its own statement seemed to suggest that Intel has taken more of a wait-and-see approach.

“We’re not sure why the ARM folks have become so vocal lately as everyone agrees that billions of devices are coming online, and there’s room for many to be successful. We’ll just have to see how things play out,” an Intel official is reported to have said.