February 18, 2025 /SemiMedia/ — Arm is set to launch its first in-house developed chips this year, marking a significant shift from its traditional business model of licensing chip designs to other companies. The company has already secured Meta Platforms as one of its first customers, a move that helped boost Arm's stock by approximately 5% following its listing in the U.S.

This strategy puts Arm in direct competition with some of its largest customers, including Nvidia, which builds its chips based on Arm's architecture. While Arm has largely benefited from the AI boom through increasing licensing fees and royalties on chips sold by other companies, this new move signals a deeper involvement in the semiconductor market.

Sources reveal that Arm CEO Rene Haas has stated the first in-house chip will be released as early as this summer. The chip is expected to power central processing units (CPUs) for large data center servers, with designs tailored for clients like Meta. Production will be outsourced to manufacturers like TSMC.

SoftBank, Arm’s major shareholder, has placed the company at the center of its efforts to expand its AI infrastructure. The introduction of Arm's own chips is seen as a key step in SoftBank’s larger plan to enter the AI chip manufacturing space. Additionally, SoftBank is reportedly preparing to acquire Ampere, a chip design company backed by Oracle, in a deal valued at $6.5 billion, which is expected to play a crucial role in Arm’s chip manufacturing initiatives.