Clash between Arm CEO Rene Haas's testimony and fresh reports suggesting Arm plans to debut its own chip lineup
In a significant shift from its traditional business model, Arm Holdings is reportedly planning to manufacture and sell its own chips, marking a potential game-changer for the computing industry. According to a report by the Financial Times last week, citing "people familiar with the UK-based group's plans," Arm is aiming to increase its influence beyond architecture licensing into full-stack chip development [1].
Currently, Arm dominates the mobile processor market with over 99% market share and is rapidly growing in the enterprise and data center segments. By 2025, ARM-based chips are projected to comprise about 50% of compute shipped to major hyperscalers like Amazon AWS, Microsoft Azure, and Google Cloud [2]. Arm's ambition is to capture 50% of the Windows PC market by 2029 and solidify over half of the data center market, signaling a far broader role beyond mobile devices.
This strategic move challenges incumbents like Nvidia and AMD in AI chip markets by offering complete, optimized hardware solutions. By developing its own silicon solutions, Arm aims to accelerate time-to-market for AI workloads and increase its share of the lucrative semiconductor value chain by integrating vertically rather than relying solely on licensing [1][3][4].
However, this strategic shift introduces execution risks and potential conflicts, as Arm must maintain ecosystem trust to avoid alienating longtime licensees who might view Arm as a competitor [1][5]. The impact on the computing industry could be profound. Arm could accelerate innovation in AI and data center hardware by tightly integrating architecture, design, and manufacturing. Its energy-efficient RISC architecture is well-suited to meet AI's performance-per-watt demands, potentially disrupting x86 dominance in PCs and servers.
The expanded role may increase competition and diversity in chip supply, reducing reliance on a few dominant players. However, Arm's challenge will be balancing vertical integration with preserving neutrality to maintain its widespread ecosystem adoption, critical for continued technology leadership and developer support [3][5].
It's important to note that Arm has not responded to requests for comment on the Financial Times report. Qualcomm, a significant player in the industry, has a second court case scheduled for March 2026 with Arm, following a December 2024 trial that ended in a ruling in favor of Qualcomm [6]. Qualcomm acquired Nuvia, a company that developed Oryon CPU cores used in Qualcomm's Snapdragon X series chips that power Copilot AI PCs, in 2021 [7].
Arm's parent company, SoftBank, is closing an acquisition for a chip design company called Ampere, which is believed to be part of Arm's chipmaking project. The specific company that will manufacture Arm's new chips remains unknown.
In summary, Arm is evolving from a neutral IP licensor into a full-stack silicon company positioned to be a foundational player in the AI-driven future of computing hardware. This shift could reshape competitive dynamics and accelerate the industry's shift toward more customized, energy-efficient AI platforms [1][3][4][5].
References:
- Arm to make its own chips, challenging rivals like Nvidia and AMD
- ARM to Capture 50% of Windows PC Market by 2029
- Arm's new chip production could shake up the computing industry
- Arm's move to manufacturing chips could reshape the industry
- Arm's new chip strategy: Opportunities and challenges
- Qualcomm and Arm to face off in court again in March 2026
- Qualcomm Acquires Nuvia to Boost AI Capabilities
- Arm's plan to manufacture and sell its own chips could mark a significant shift in the computing industry, challenging competitors like Nvidia and AMD.
- By 2029, Arm aims to capture 50% of the Windows PC market, signaling a broader role beyond mobile devices.
- The company's energy-efficient RISC architecture is well-suited to meet AI's performance-per-watt demands, potentially disrupting x86 dominance in PCs and servers.
- Arm's move towards full-stack chip development could accelerate innovation in AI and data center hardware by tightly integrating architecture, design, and manufacturing.
- However, this strategic shift introduces execution risks and potential conflicts, as Arm must maintain ecosystem trust to avoid alienating longtime licensees.
- Arm's challenge will be balancing vertical integration with preserving neutrality to maintain its widespread ecosystem adoption, critical for continued technology leadership and developer support.
- In a bid to bolster its chipmaking project, Arm's parent company, SoftBank, is acquiring a chip design company called Ampere, but the specific manufacturer for Arm's new chips remains unknown.
