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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/01/arm-signs-microsoft-software-deal.jpg"><img class="alignnone size-full" title="Steven Sinofsky, president of Microsoft's Windows and Windows Live division (AP)" src="http://londonglossy.com/wp-content/uploads/2011/01/min-arm-signs-microsoft-software-deal.jpg" alt="Steven Sinofsky, president of Microsoft's Windows and Windows Live division (AP)"/></a></p>
<p>Computing giant Microsoft has revealed a new version of its flagship Windows software that will run on microchips designed by British company ARM.</p>
<p>The link-up means ARM&#8217;s chip designs will feature in a new range of Windows-based products, including tablets and mobile phones, which are likely to hit the shelves in two or three years&#8217; time.</p>
<p>The deal is a coup for Cambridge-based ARM, analysts said, and will allow Microsoft to push into the high-end tablet market, which includes products such as Apple&#8217;s iPad.</p>
<p>ARM, which is a leading designer of chips for smartphones and tablets, saw shares rally to a 10-year high after Microsoft&#8217;s announcement at the Consumer Electronics Show in Las Vegas. The shares have climbed 188% in the past year to Thursday&#8217;s high of 534p.</p>
<p>Unveiling the new software, Steven Sinofsky, president of the Windows division at Microsoft, said: &#8220;With this announcement, we&#8217;re showing the flexibility and resiliency of Windows through the power of software and a commitment to world-class engineering.&#8221;</p>
<p>Warren East, chief executive of ARM, said the link-up with Microsoft would help deliver innovative products to customers.</p>
<p>He said: &#8220;We are excited by today&#8217;s announcement, which marks a significant milestone for ARM and the ARM Partnership, and we look forward to working with Microsoft on the next generation of Windows.&#8221;</p>
<p>Microsoft also said other Windows-based products would continue to use chip designs from Intel.</p>
<p>Gareth Evans, analyst at brokers Investec, said the significance of the deal for ARM was &#8220;hard to overstate&#8221; and marked a move away from Microsoft&#8217;s long-standing partner Intel.</p>
<p>He said: &#8220;The confirmation shows a determination on the part of Microsoft to compete seriously with Apple and Google Android-based devices in the tablet and portable device market. The new technology will eventually apply to a group of products, not just tablets, although it will realistically be two to three years before ARM-based products will be released.&#8221;</p>
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