UK-based semiconductor IP giant Arm is reportedly expanding its efforts in chip design, with plans to release its first self-developed processor as early as summer 2025. Reports indicate that Meta Platforms is among its initial customers, signaling a potential shift in Arm's role within the industry.
According to the Financial Times, Reuters, and Bloomberg, Arm's inaugural chip product is expected to be a data center server CPU. While Qualcomm is actively pursuing Meta as a buyer for its own Arm-based data center processors, at least part of Meta's orders have reportedly been secured by Arm. This development has raised concerns among industry analysts, who warn that Arm's direct entry into chip design could undermine its traditionally neutral position as an IP provider.
Despite Arm CEO Rene Haas stating in a December 2024 court case against Qualcomm that the company had never engaged in chip design, reports suggest otherwise. A Reuters report indicates that as early as November 2024, Arm had begun hiring efforts targeting talent from its own clients to facilitate its transition from solely providing processor architecture to manufacturing chips.
Further fueling speculation, sources claim that Arm's largest shareholder, SoftBank Group, is considering acquiring Ampere Computing, which specializes in Arm-based server CPUs. This acquisition could be key in advancing Arm's chip development strategy. Additionally, reports suggest that OpenAI, in collaboration with SoftBank and LoveFrom—founded by former Apple Chief Designer Jony Ive—plans to develop an AI-driven personal device that could incorporate Arm-designed chips.
The potential competitive overlap between Arm and its clients has sparked debate. Industry observers note that companies relying on Arm's IP may rethink their relationship if they perceive Arm as a direct competitor. Qualcomm, which is currently in a legal dispute with Arm over royalty fees, has argued that Arm's actions reflect a shift in its market positioning.
In response to these developments, Arm, SoftBank, and Meta have declined to comment.
