In a significant shift in its business strategy, Arm is set to unveil its first in-house chip this summer, with Meta as one of its initial customers. This move marks a departure from Arm’s traditional model of licensing chip designs to major companies like Apple and Nvidia, potentially reshaping the $700 billion semiconductor landscape.
Arm’s CEO, Rene Haas, is expected to introduce a central processing unit (CPU) for servers aimed at large data centers, which can be customized for clients. Production will be outsourced to manufacturers like Taiwan Semiconductor Manufacturing Co. The announcement has already sparked a 6% surge in Arm’s shares.
SoftBank’s founder, Masayoshi Son, sees this chip launch as a stepping stone in his ambitious plans to expand into AI chip production, part of a broader $500 billion initiative called Stargate, in collaboration with OpenAI and other partners. Additionally, SoftBank is nearing a $6.5 billion acquisition of Ampere, further bolstering Arm’s chipmaking capabilities.
