The Arm company, known as the developer of the processor architecture of the same name, decided to develop its own chips. This is reported by the Financial Times. However, Qualcomm, MediaTek, Samsung and others should not be afraid of a new competitor. Arm intends to build the chips to help showcase its designs and attract new customers.
The moves are aimed at attracting more customers and boosting revenue and profits before Arm tries to go public on the NASDAQ and become a public company in the U.S., people familiar with the matter said. Last year, Arm’s 22 clients generated a whopping 86% of revenue. The concern is that if a small number of customers decide to leave, a large part of the business will be adversely affected. Therefore, the company needs a wider customer base.
Arm hopes the new chip prototypes will demonstrate just how powerful its architectures can be. The company has already created test samples in partnership with manufacturers TSMC and Samsung. The project started about six months ago. According to sources, the new chip architectures are more advanced than in previous semiconductor devices. Kevork Kechichyan, head of Arm’s chip prototyping engineering group, previously worked at Qualcomm and led the Snapdragon chip development project.
It is emphasized that Arm does not plan to license or sell the chips, but only makes demonstration prototypes. Such chips can be the basis for mobile devices, laptops and other electronics. Arm’s work on improving the performance and security of its developments will have positive consequences for smartphone users.
It will be recalled that earlier the developer of video chips Nvidia tried to buy Arm for $40 billion, but the deal was never completed.
Source: phonearena
