Arteris, Inc. (NASDAQ: AIP)

Arteris is a leading provider of semiconductor system IP, including interconnect and other intellectual property technology. The company's System IP technology manages on-chip communications and IP block deployments by enabling data movement across chiplets, single-die and multi-die System-on-Chip semiconductors. Arteris achieves this by connecting various semiconductor IP blocks such as processors, memory and logic via multiple Network-on-Chips to help customers meet functional design goals as well as performance and power requirements while addressing design complexity with efficient and lower cost solutions.

Arteris generates revenue through a license, support and maintenance fee and a royalty business model. The company provides hardware, software, documentation, support, and training to companies that design and produce semiconductors. Arteris also serves system-level companies and original equipment manufacturers. The company's products are used in aerospace and defense, automotive, communications, consumer electronics, enterprise computing, and industrial markets.

Arteris operates through the following segments: Network-on-Chip IP Products, SoC Integration Automation Software Solutions, and Hardware Security Verification Software Products.

• Network-on-Chip IP Products: This segment provides semiconductor interconnect IP products including non-coherent NoC IP with FlexGen, FlexNoC and FlexWay, cache-coherent NoC IP with Ncore, and NoC interface IP with CodaCache. The segment's products are shipping in billions of devices worldwide across chiplets, multi-die SoCs, ASICs, MCUs and FPGA silicon designs. FlexGen smart NoC IP builds upon silicon-proven and physically aware FlexNoC IP to automate the creation of high-performance NoC designs using AI-driven automation to reduce manual iteration and provide expert-level NoC topologies while reducing wire-length and power.

• SoC Integration Automation Software Solutions: This segment provides a suite of software that enables the packaging, reuse and integration of IP blocks using the IP-XACT standard. The segment's products include hardware and software integration automation software with Magillem Registers and CSRCompiler, and SoC assembly software with Magillem Connectivity. These solutions shorten design schedules and improve SoC engineers' productivity across architects, logic designers, software/firmware developers, verification teams, and documentation teams by providing a design environment from SoC architecture through delivery of a fully documented and traceable chip design.

• Hardware Security Verification Software Products: This segment provides hardware security verification software that helps customers explore and visualize information flows through IP, sub-systems, and systems to identify security weaknesses. The segment's products include hardware security verification simulation for IP, sub-system, and SoCs with Cycuity Radix-S, hardware security verification emulation for system-level SoC and firmware with Cycuity Radix-M, and static security analyzer with Cycuity Radix-ST. These solutions help customers discover potential security vulnerabilities during the design phase and make sign-off decisions based on data and reports to deliver secure semiconductor products.

Arteris holds a leading position in the semiconductor system IP market as a pioneer in Network-on-Chip technology for on-chip communication. The company competes primarily against internally developed interconnect IP solutions by semiconductor companies and third-party providers including Arm and smaller companies. Arteris believes its competitive advantages include barriers to entry from years of experience, proprietary solutions, and the technical expertise required to develop competitive products, which helps reduce customer research and development costs, lower SoC unit costs, and improve performance and security through features like three levels of clock gating and power domain capabilities.

Arteris serves a global and diverse customer base including semiconductor manufacturers, OEMs, hyperscale system houses, semiconductor design houses, and other producers of electronic systems. The company works directly with customers throughout their design processes to develop long-term sustainable relationships. In 2025, one customer represented more than 10% of revenue, with geographic revenue distribution showing 41.5% from the Americas, 10.9% from Europe and the Middle East, and 47.6% from the Asia Pacific region.