Arm, the UK-based semiconductor designer, plans to launch its own chip this year, marking a significant shift from its traditional model of licensing designs to companies like Apple and Nvidia. The new chip, expected to be a central processing unit (CPU) for servers in large data centers, will be customizable for clients and manufactured by companies such as Taiwan Semiconductor Manufacturing Co.
This move positions Arm in direct competition with its existing partners and could disrupt the $700 billion semiconductor industry. The announcement has positively impacted Arm’s shares, reflecting investor confidence in its new strategy. This initiative aligns with SoftBank founder Masayoshi Son’s broader focus on AI infrastructure, including the $500 billion Stargate project supported by OpenAI, Abu Dhabi state fund MGX, and Oracle.
Additionally, Arm has secured Meta as a customer for this new chip, further bolstering its entry into the market. However, this strategic expansion under Chief Executive Rene Haas may lead to competitive tensions with partners like Qualcomm and Nvidia.