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# Arteris CEO Sees Chiplets Rising From 10% Of Its Design Starts To 35%, Each With Its Own Royalty
- URL: https://www.bullished.co/arteris-ceo-sees-chiplets-rising-from-10-of-its-design-starts-to-35-each-with-its-own-91bf218e/
- Published: 2026-11-06T07:46:53.000Z
- Updated: 2026-11-06T07:46:53.000Z
- Description: Charlie Janac said each chiplet in a package carries its own project price and royalty, with negotiated discounts.
- Author: Matteo Parrino
- Tags: Earnings, AIP, Industry: Technology

Arteris, which licenses the technology that moves data inside complex chips, sees chiplets growing from about 10% of its [design starts](https://www.benzinga.com/news/26/11/62958234/arteris-q3-2026-earnings-call-transcript?ref=bullished.co) to perhaps 35% or more over two to three years, CEO Charlie Janac told analysts on the company's third-quarter earnings call Thursday. Each chiplet in a package, he said, is its own project and its own royalty stream.

## One package, many royalties

Pressed by an analyst at Roth Capital on how chiplet projects compare with traditional single-die programs, Janac said pricing is negotiated. With five or six chiplets in a package, he said, customers discuss a discount on each project, so "it's not a [basically 1x multiplier](https://www.benzinga.com/news/26/11/62958234/arteris-q3-2026-earnings-call-transcript?ref=bullished.co) for each chiplet."

Still, he said, Arteris and others in the industry are establishing a model in which each chiplet has "its own project price and its royalty." Chiplet projects carry significantly higher average selling prices than single-die projects, he said, and the company is "already in a significant number of chiplet designs."

An analyst at TD Cowen asked how much revenue now comes from the FlexGen and Ncore multi-die products. Janac said Arteris does not break that out individually, but called chiplets "a significant contributor to our revenue growth." He gave a longer-run range of "maybe, 30%, 35%" of designs.

## Data centers lead adoption

Chiplet projects are most prevalent in data centers, Janac said, because they serve AI training and inference workloads. He called those "big, complex projects" with much higher selling prices.

He said chiplet designs must handle both on-die and multi-die data movement, which makes the work more valuable and more complex for Arteris.

## Deal sizes and a record quarter

Asked by a Jefferies analyst what a customer pays when it buys several products, Janac said network-on-chip alone should run to about $1 million in average selling price. Adding the Magillem integration and Cycuity security products would add roughly $400,000 to $450,000, he said, for something around $1.4 million to $1.5 million.

Arteris, based on its [earnings release](https://www.globenewswire.com/news-release/2026/11/05/3397026/0/en/arteris-announces-financial-results-for-the-third-quarter-and-estimated-fourth-quarter-and-updated-full-year-2026-guidance.html?ref=bullished.co) and call, posted record revenue of $25.8 million, up 48% from a year earlier, and annual contract value plus royalties of $104 million, up 39%. The company raised full-year 2026 revenue guidance by $2.5 million to a range of $98.5 million to $99.5 million. Cash and investments stood at $120 million with no financial debt, CFO Saurabh Sinha said.

Management will appear at the Roth Technology Conference on November 18 and the Northland Growth Conference on December 16.

Management's next chance to field chiplet pricing questions comes November 18 at the Roth Technology Conference in New York.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### Sources

- [Arteris, Inc. (AIP) Reports Q3 Loss, Tops Revenue Estimates](https://finance.yahoo.com/markets/stocks/articles/arteris-inc-aip-reports-q3-000019565.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Arteris Q3 2026 Earnings Call Transcript](https://www.benzinga.com/news/26/11/62958234/arteris-q3-2026-earnings-call-transcript?ref=bullished.co) — benzinga.com
- [Arteris Announces Financial Results for the Third Quarter](https://www.globenewswire.com/news-release/2026/11/05/3397026/0/en/arteris-announces-financial-results-for-the-third-quarter-and-estimated-fourth-quarter-and-updated-full-year-2026-guidance.html?ref=bullished.co) — globenewswire.com
- [Arteris Surpasses 1,000 Customer Design Starts,](https://www.globenewswire.com/news-release/2026/11/05/3396504/0/en/arteris-surpasses-1-000-customer-design-starts-highlighting-the-evolution-of-semiconductor-design.html?ref=bullished.co) — globenewswire.com