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According to a report from Financial Times, Arm Holdings is preparing to launch its own chip in 2025, with Meta Platforms being one of its initial customers. Sources indicate that Arm could unveil its first chip as early as this summer, as noted in the report.
The Financial Times report states that Arm’s first chip is expected to be a CPU tailored for servers in large-scale data centers. As highlighted, the chip reportedly will be manufactured by TSMC.
As per the report, SoftBank and Meta did not provide a response to its requests for comment, while Arm refrained from commenting.
As noted in a report from CNBC, currently, Arm only licenses its technology—commonly referred to as an instruction set—along with core designs to clients, allowing them to develop their own chips. However, its new strategy could place it in direct competition with its existing customers.
Another report from Reuters mentions that Arm has been recruiting executives from licensees for its chip-making project.
The Reuters report, citing industry sources, states that Arm is competing with Qualcomm for business. Previously, Qualcomm had engaged in discussions with Meta to supply a data center CPU based on Arm’s architecture. However, the report indicates that Arm has secured at least part of that business.
In December 2024, Arm was involved in a legal dispute with Qualcomm over licensing fees, as noted in a report from TechNews. According to TechNews, Qualcomm accused Arm of attempting to compete with its own customers by designing its own chips rather than strictly serving as a technology provider. Arm, however, denied these claims in court.
The Reuters report also indicates that Arm may be positioning itself as a competitor to NVIDIA. The report, citing sources, states that Broadcom has secured a contract in collaboration with Arm and SoftBank Group to develop a specialized AI chip designed to power data centers for SoftBank.
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(Photo credit: Arm)
