ARM is developing its own “more advanced” chip, which it does not plan to license to other companies
According to the report of Financial Times, ARM is developing its own chip. The company tasked its newly formed team of “solutions engineers” led by former Qualcomm executive Kevork Kechichian to create a processor that can demonstrate the capabilities of its products. The main goal of the company in this project is to attract new customers ahead of the expected initial public offering of shares later this year.
The Financial Times also reported that ARM has been working on the prototype for about six months. According to many industry executives, the resulting chip is “more advanced” than any chip produced in the past. The fact that multiple sources outside of ARM have spoken about the development suggests that the prototype chip is something of an open secret in the chip industry.
ARM declined to comment, but according to the Financial Times, the firm has no plans to sell or license the prototype design to other companies. ARM’s business model is built around licensing its architecture to other firms. More than 500 companies, including Apple, MediaTek and Qualcomm, use ARM-designed components in their processors.
However, there are areas where ARM could potentially capture new markets. ARM components are rarely seen in the computer market, except for recent Macs. Last week, the company warned investors of a “significant concentration” risk to its business. In 2022, ARM’s top 20 customers accounted for 86% of its revenues. Losing a few key customers can have a significant impact on a company’s growth.
In addition to attracting new customers and mitigating concentration risks, the project can also benefit consumers. According to the Financial Times, ARM’s solution development team is working to improve the performance and security of its designs, which is expected to extend to the devices we use every day.