Cambridge-based ARM Holdings has unveiled a new chip for smartphones in the £130 to £230 price bracket. The new Cortex A-12 processor is expected to power half a billion devices by 2015.
The firm expects chips to be used in more wearable devices, including smart watches, as early as this year.
Competitor Intel recently revealed an extensive overhaul to its Atom mobile range of processors, which power devices in the mid-range market ARM is looking to capture completely.
ARM presently has a market share of over 90 per cent in the mid-range field and its chip designs power devices such as the Apple iPhone and iPad.