Introduction to Arm’s New Chip

Chip designer Arm is planning to unveil its own processor this year, with Meta as the launch customer, according to a report by The Financial Times. The chip, a CPU designed for servers in data centers, would have the potential to be customized for clients. Manufacturing would be outsourced to a contract fab plant like TSMC (Taiwan Semiconductor Manufacturing Co.), with the first in-house chip potentially being revealed as early as this summer.

Partnerships and Projects

Last month, Arm’s parent company Softbank announced the Stargate project, a partnership with OpenAI to build up to $500 billion worth of AI infrastructure. Arm, along with Microsoft and NVIDIA, is a key technology partner for the project. Arm’s chip could now play a role in that project, as well as in Jony Ive’s mysterious AI-powered personal device, reportedly being developed in collaboration with OpenAI’s Sam Altman.

Arm’s Current Dominance

Arm’s designs power nearly every smartphone and mobile device in the world, along with Apple Mac and Qualcomm-powered Windows PCs. They generally use less power for the same level of compute as Intel and AMD chips, making them desirable for data farms that power AI applications.

Competition and Challenges

The move would put Arm in direct competition with many of its own customers, including NVIDIA, which manufactures its own Arm-based server CPUs. To date, Arm has never made its own chips, instead licensing its technology and patents to major companies like Apple.

Legal Battles and Acquisitions

UK-based Arm is currently embroiled in a testy legal battle with Qualcomm over licensing terms. Meanwhile, parent SoftBank is reportedly close to purchasing Ampere, a server chip designer, a deal that will be "central to Arm’s own chipmaking project," according to FT‘s inside sources.

Conclusion

If you buy something through a link in this article, we may earn a commission. Arm’s decision to develop its own chip marks a significant shift in the company’s strategy, with potential implications for the tech industry as a whole.