July 30 - Arm, a leading IP company, confirmed during its earnings conference that it will expand from IP architecture business to in-house chip manufacturing, initially focusing on the AI sector. It may even participate in providing chip solutions for the U.S. $50 billion AI infrastructure "Stargate" program, a move that has shocked the industry.
For a long time, Arm has centered its business on licensing IP architectures, holding the top market share in non-x86 architectures and serving as the "technical cornerstone" for global IC design companies. Now, shifting to in-house chip production means directly breaking industry conventions, competing with clients like NVIDIA, MediaTek, Broadcom, and Marvell — especially in head-to-head rivalry in the AI chip sector, triggering widespread alert in the IC design industry.
Arm CEO Haas acknowledged that R&D investment will surge, leading to lower-than-expected quarterly earnings forecasts. Affected by this, the stock price plummeted over 12.6% in early trading on July 31. However, he emphasized that this is a "deliberate strategic investment," which will suppress short-term profits but support long-term growth, particularly seizing opportunities in the AI field.
Haas revealed that Arm has started designing chips for the U.S. "Stargate" program. While not specifying product types or release dates, it plans to offer complete end-to-end solutions, focusing on data center chip design to tap into AI infrastructure opportunities. Analysts believe Arm is transforming into a comprehensive semiconductor design supplier, aiming to capture a larger market share in the AI era.
Arm's foray into in-house chip manufacturing will reshape industry competition. ICgoodFind continues to monitor the implementation of its strategy.
