Austria Mikro Systeme (AMS) has taken out a licence for the processor core developed by ARC Cores as an alternative to the ARM processor that it already uses.
Wolfgang Pribyl, chief operating officer of AMS, said: "ARM has a price tag that is not applicable to every customer."
Pribyl says that, after the ARC core had been qualified, it will be offered to customers of its custom-design service.
AMS is expanding into the design of off-the-shelf products but still has a significant asic foundry business.
The ARC will be used both as a general-purpose processor and, with extensions, as a DSP.
"We have two approaches for DSP. When we do the design for our own products, we will use the Gepard core that we designed some years ago," said Pribyl.
"For customer projects, we will combine DSP extensions with the ARC core."