ARM begins to produce its own chip: its customer is also meta

7
ARM begins to produce its own chip: its customer is also meta
Arm Holdings, the design giant design giant, is approaching step by step towards producing his own chip by showing a great deviation from the business model he has adopted for many years. According to the Financial Times, the company will begin to produce its own chip this year. In addition, the company’s first customer will be meta. Following the emergence of this news, ARM’s shares on US stock markets rose by about 5 %.

A historical step is coming from ARM

ARM, which has earned revenue by selling design license to chip manufacturers so far, is entering direct competition by producing its own chip for the first time. The new chip will be a central processing unit (CPU) specially designed for large data centers. The production of this chip, which will have a customizable structure for large -scale customers, including Meta, will be given an outsourcing to a manufacturer such as Taiwan -based TSMC.

This move will be competitive with some of its biggest customers. Giants such as Nvidia are currently developing their chips using ARM’s architecture. Since ARM has not produced directly chips so far, it only benefited from growth explosions of artificial intelligence. As an neutral chip designer, ARM has been standing at an equal distance to all manufacturers. The fact that it starts to produce its own chips may change the attitude of its customers against ARM.

Masayoshi Son, the founder of Softbank, who has the majority shares of ARM, sees this chip move as a critical step in line with its goal of expanding artificial intelligence infrastructure. According to FT, Softbank is preparing to buy Oracle -supported chip designer Ampere for $ 6.5 billion to support ARM’s chip production project. This acquisition can accelerate ARM’s artificial intelligence -oriented chip production plans.

It seems that ARM, led by Rene Haas, enters a great transformation process by releasing its chip. This can be a move that can affect the future of not only ARM, but also the whole semiconductor sector. Meanwhile, the company is expected to introduce its first chip in summer.