Now the British Semiconductor Company ARM is not just stopping as a chip designer. The company will produce its own chip this year. And the first customer of this tech giant will be meta.
The new plan indicates a major change in the business model of ARM. Earlier, the company was licensed by customers like Apple, Nvidia. But now they are going to start production of chip themselves.
The British media Financial Times reported that the company's chief executive Renny Hass could unveil ARM's own chip next summer, citing those who were reluctant to be named.
Since its establishment in the 5th, more than 3 billion chips have been created in the design of ARM. Almost all the world's smartphones are based on ARM technology.
When the chip designing starts the entire processor itself, ARM will compete with some of its major customers. Such as Apple, Nvidia will compete with other major technology companies.
That is, the ARM is now going to enter a market where the company used to sell their designs before. But now the ARM will produce its own chip, which will make a major change in the semiconductor industry of £ 3 billion.
ARM did not comment on the matter. However, after the release of the Financial Times report, the company's shares increased by more than 5 percent last Thursday.
The Financial Times also said that the softbank founder Masayoshi is part of a large plan of the ARM's own chip. Through this he wants to make more profit from softbank's own intelligence property (IP). This plan includes production of artificial intelligence (AI) chip and form a large AI infrastructure network.
Last month, Masyoshi Sun announced his 'Stargate' initiative. It will combine the OpenAI to build artificial intelligence (AI) infrastructure at the cost of about 1 billion euros. Abu Dhabi's state funds are funded by MGX and Oracle and Oracle. And ARM has been associated with ARM Microsoft and Nvidia as an important technology ally.
The ARM's chip will serve as a central processing unit (CPU), which will be used for a server in large data centers. The chip can be customized for various customers including Meta. Production of chips will probably be outsourced through a company like the Taiwan Semiconductor Manufacturing Company (TSMC).
In addition, the ARM's main company Softbank can acquire the 'Ampair' company. Ampair is a chip designer company that produces armor -based chips and receives the support of Oracle. The value of this agreement can be about $ 9.5 billion.
Since Nasda was listed in 2021, the market value of ARM has doubled to $ 1 billion. Investors' interest in artificial intelligence (AI) has increased the market value of ARM. ARM was previously listed on London's stock market. However, the company acquired the softbank in the 21st.
Meta has begun to use ARM's power -efficient server chip instead of Intel and AMD.
The use of ARM chips has increased in data centers through partnership with Nvidia and Amazon. Artificial intelligence assistant technology such as OpenAI, Meta and Anthropic is operating with these data centers.
