The ARM design was started in 1983 as a development project at Acorn Computers Ltd to build a compact RISC CPU. Led by Sophie Wilson and Steve Furber, a key design goal was achieving low-latency input/output (interrupt) handling like the MOS Technology 6502 used in Acorn's existing computer designs. The 6502's memory access architecture allowed developers to produce fast machines without the use of costly direct memory access hardware. The team completed development samples called ARM1 by April 1985, and the first "real" production systems as ARM2 the following year.
The ARM2 featured a 32-bit data bus, a 32-bit (4 Gbyte) address space and sixteen 32-bit registers. Program code had to lie within the first 64 Mbyte of the memory, as the program counter was limited to 26 bits because the top 6 bits of the 32-bit register served as status flags. The ARM2 was possibly the simplest useful 32-bit microprocessor in the world, with only 30,000 transistors (compare with Motorola's six-year older 68000 model with around 70,000 transistors). Much of this simplicity comes from not having microcode (which represents about one-quarter to one-third of the 68000) and, like most CPUs of the day, not including any cache. This simplicity led to its low power usage, while performing better than the Intel 80286. A successor, ARM3, was produced with a 4KB cache, which further improved performance.
In the late 1980s Apple Computer and VLSI Technology started working with Acorn on newer versions of the ARM core. The work was so important that Acorn spun off the design team in 1990 into a new company called Advanced RISC Machines Ltd. For this reason, ARM is sometimes expanded as Advanced RISC Machine instead of Acorn RISC Machine. Advanced RISC Machines became ARM Ltd when its parent company, ARM Holdings plc, floated on the London Stock Exchange and NASDAQ in 1998.
The new Apple-ARM work would eventually turn into the ARM6, first released in 1991. Apple used the ARM6-based ARM 610 as the basis for their Apple Newton PDA. In 1994, Acorn used the ARM 610 as the main CPU in their Risc PC computers. DEC licensed the ARM6 architecture (which caused some confusion because they also produced the DEC Alpha) and produced the StrongARM. At 233 MHz this CPU drew only 1 watt of power (more recent versions draw far less). This work was later passed to Intel as a part of a lawsuit settlement, and Intel took the opportunity to supplement their aging i960 line with the StrongARM. Intel later developed its own high performance implementation known as XScale which it has since sold to Marvell.
The ARM core has remained largely the same size throughout these changes. ARM2 had 30,000 transistors, while the ARM6 grew to only 35,000. ARM's business has always been to sell IP cores, which licensees use to create microcontrollers and CPUs based on this core. The most successful implementation has been the ARM7TDMI with hundreds of millions sold in almost every kind of microcontroller equipped device. The idea is that the Original Design Manufacturer combines the ARM core with a number of optional parts to produce a complete CPU, one that can be built on old semiconductor fabs and still deliver substantial performance at a low cost. As of January 2008, over 10 billion ARM cores have been built, and iSuppli predicts that 5 billion a year will ship in 2011.
The common architecture supported on smartphones, Personal Digital Assistants and other handheld devices is ARMv4. XScale and ARM926 processors are ARMv5TE, and are now more numerous in high-end devices than the StrongARM, ARM925T and ARM7TDMI based ARMv4 processors.
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