Leading British chip designer, Arm Ltd, is reportedly developing semiconductor chips of its own to demonstrate the capabilities of its technology and products. Reports cite, the move is aimed at bringing in new customers and fueling revenue growth following the company’s upcoming IPO later this year.
According to reliable sources, Arm is looking to make its own chips to have a better control over the production of its intellectual property and also fulfil the rising demand for Arm goods. As more enterprises migrate their operations to the cloud, the chip designer is supposedly developing chips that are specifically meant for data centers.
Apparently, the new move is also perceived to be a response to rivals AMD and Intel, who have started competing with the firm by making their own CPUs for data centres. As per Arm, manufacturing its own chips will help the company be better equipped to retain a competitive edge in the market.
As per some industry experts, Arm’s foray into the chip manufacturing sector could also cause a shift in the industry’s power dynamics. Historically, firms that design chips have been regarded as less powerful than firms that manufacture them as they have more control on the supply chain.
Arm’s new step can change that dynamic fundamentally, offering chip designers better control over the production process.
Reports claim, the new chips would be produced by industry heavyweight, TSMC, who is well known for producing cutting-edge semiconductor chips for numerous tech firms, including Qualcomm and Apple. Currently, Arm is designing chips meant to be used in servers, storage systems, and networking gear, based on the company’s own architecture. However, they will be optimized specifically for data centers.
Arm’s venture inside the semiconductor sector is yet another sign hinting towards the growing significance of the chip industry.