ARM to Unveil New GPU to Compete with NVIDIA and Intel
According to reports, British semiconductor leader ARM is spearheading the development of a new GPU in Israel, positioning itself to challenge major players such as NVIDIA and Intel. ARM's global graphics team, based at its Ra'anana development center, employs approximately 100 engineers specializing in chip and software development.
Currently, ARM is focused on advancing graphics processing technologies for the gaming industry. Should ARM choose to expand further, its technology could also be adapted for artificial intelligence processing, akin to NVIDIA's approach.
ARM's business model differs from other chip companies. Rather than designing or manufacturing its own processors, ARM develops intellectual property and chip development software. This technology is then licensed to other companies, which customize and integrate it into their proprietary systems. This approach has established ARM as a key enabler in the semiconductor industry, offering valuable technology without directly competing with its clients. Notable customers include Qualcomm, MediaTek, and Apple, while NVIDIA also utilizes ARM technology, though not in the GPU sector.
ARM's technology has already been integrated into processors for smartphones and tablets, including those from Qualcomm. Major game developers such as King, Riot Games, War Gaming, and Tencent collaborate with ARM to enhance gaming performance on chips utilizing its technology.
The hardware team at ARM's Ra'anana facility is responsible for developing key components of these GPUs, including the flagship Immortalis GPU. Simultaneously, the Israeli software team focuses on creating software interfaces for game developers, including support for Vulkan and OpenGL. The office also oversees software development, development tools, cybersecurity for chip protection, and sales and service functions for chip companies working with ARM.
ARM's Israeli team works with innovative startups like Hailo, which designs AI chips for security cameras. The development center played a crucial role in assisting Hailo shortly after its inception, contributing to its $16 million in early-stage funding. Another notable collaboration is with NeuReality, a company founded by Moshe Tanach. NeuReality, in partnership with ARM and AMD, is developing hardware designed to reduce reliance on costly NVIDIA servers and improve power efficiency. Their 7nm chips, based on ARM’s Neoverse technology, are tailored for complex AI processing in data centers and end devices.
Dedi Yellin, ARM's GPU hardware engineering director and site manager in Israel, leads the development center. Yellin joined ARM in 2015 following the company’s acquisition of Sansa Security for $80 million. At Sansa Security, Yellin served as hardware development director, focusing on data security components for mobile devices.
ARM, owned by SoftBank, was one of the most successful tech IPOs of 2023, debuting with a valuation of $51 billion. The company's current market value stands at $123 billion, with its stock up nearly 70% in 2024. Despite a 170% increase in stock price earlier this year, ARM experienced a decline of about one-third in July due to lower-than-expected sales forecasts.
Earlier this month, ARM reported a 39% year-over-year increase in second-quarter revenue, reaching $939 million. For the third quarter of 2024, ARM anticipates revenue between $780 million and $830 million. ARM faces competition from the open-source RISC-V initiative, which enables developers to design chip technology at no cost.
Future growth opportunities for ARM include plans to develop AI processors for its own servers, potentially competing with NVIDIA. Additionally, ARM is exploring collaborations with MTK and NVIDIA to launch AI processors for PCs, challenging Intel and AMD. ARM also supports tech giants like Apple, Google, and Amazon in developing AI processors and servers, aiming to reduce their reliance on NVIDIA and Intel. ARM employs 7,300 people across its development centers in Cambridge, the US, Taiwan, and Israel.
