ARM Collaborates with Partners to Develop Its Own Advanced Chips Aimed at Driving Performance Growth After IPO

Industry sources have revealed that ARM has started working on its own chips in the past six months. ARM has established a new "Solution Engineering" team, responsible for leading the development of new prototype chips. According to the Financial Times, ARM will move away from its original business model of only licensing IP for clients and collaborate with chip design and manufacturing partners to develop new advanced chips. This is to attract investors during the IPO process and drive performance growth after going public.

It is important to note that ARM is facing competition from rivals like RICS-V architecture. They have also been reported to be considering changing their royalty billing model. It highlights the company's urgent need to generate revenue and profitability, as they can no longer rely on SoftBank's support.

ARM has partnered with Samsung Electronics and TSMC to build some test chips, mainly to familiarize software developers with new products. The Solution Engineering team, led by semiconductor industry veteran Kevork Kechichian, who joined ARM in February, is responsible for leading the development of new prototype chips.

Although ARM is moving away from the familiar IP licensing model and collaborating closely with foundries to develop their own chip designs and manufacturing, it is worth noting that ARM does not plan to sell or license these products directly to clients. Instead, they are focusing on developing prototype chips.