Go to Project > Manage > Project Items > Folders/Extensions . Click the "..." next to "Use ARM Compiler" and point it to the bin folder of your new installation.

Once you have the ARMCompiler_506_updates_7 installer (usually a .zip or .exe for Windows), follow these integration steps:

Arm Compiler 5.06 update 7 is the final maintenance release of the version 5 series. It is highly sought after because:

Avoid "hot" download links from third-party forums or file-sharing sites. These often contain cracked versions that are not only illegal but can introduce or, worse, silent compiler bugs into your production firmware. Always stick to official Arm or Keil portals.