ARM is rumored to be developing its own chip model. According to Financial Times, the company has established a new 'Solution Engineering' team, led by former Qualcomm CEO and Snapdragon designer Kevork Kechichian, to produce a semiconductor to showcase its product capabilities.
The clear objective of ARM with this project is to attract new customers ahead of the highly anticipated initial public offering later this year.
The Times reports that the company began working on prototypes about six months ago. Many executives in the industry revealed that the design achievement is 'more advanced' than any processor ever produced before. In fact, many outside sources to ARM have disclosed to The Times about the internal chip indicating that the prototype is an open secret in the chip industry.
ARM declined to comment. According to The Times, the company has no plans to sell or license prototype designs to other companies. The company's business model is built around licensing architecture to other companies. Over 500 companies, including Apple, MediaTek, and Qualcomm, use components designed by ARM in their processors.
There are still market segments that ARM could penetrate. For example, in the PC market, ARM architectures are very rare outside of recent Mac models running Apple M chips.
The number of computers running ARM architecture chips in the market is still relatively low (Image: BBC)As The Times noted, ARM warned investors last week of 'significant concentration' risks to its business operations. In 2022, ARM's top 20 customers accounted for 86% of revenue. The company told analysts: 'Losing a small number of key customers could significantly impact group growth.'
Conversely, this project could be a positive development for consumers. According to The Times, ARM's solution engineering team is also working to improve performance and security for the company's designs. That effort could be applied to the devices you use every day.
Do you have any predictions about the chip model produced by ARM itself?
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Source: Engadget
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