ARM Recruits from Customers, Competes with Them for Deals in Shift to Sell Own Chips
ARM has begun recruiting from its own customers and competing against them for deals as it pushes toward selling its own chips, according to people familiar with the matter and a document viewed by Reuters.
ARM’s New Strategy
Arm supplies the crucial intellectual property that firms such as Apple and Nvidia license to create their own central processing units (CPUs). It has also been seeking to expand its profits and revenues through a range of tactics, including considering whether to sell chips of its own.
Ramping Up Efforts
The UK-based company has sought to recruit executives from licensees, two sources familiar with the matter told Reuters. And Arm is competing against Qualcomm, one of its largest customers, to sell data centre CPUs to Meta Platforms, according to a person familiar with the matter.
Arm’s Recruitment Efforts
Arm recruiters have contacted other chip designers in Silicon Valley in an attempt to lure talent for the same purpose, according to two industry sources.
Competing with Qualcomm and Nvidia
Arm is also competing with Qualcomm for business. Qualcomm was in discussions with Facebook owner Meta Platforms to supply it with a data centre central processing unit based on Arm’s computing architecture but Arm has won at least some of that business, according to a person familiar with the matter.
Conclusion
Arm’s new strategy may upend an industry that has long viewed the company as a neutral player rather than a competitor, forcing companies who rely on Arm technology to consider whether they will end up competing against the firm for business.
FAQs
Q: What is Arm’s new strategy?
A: Arm is recruiting from its own customers and competing against them for deals as it pushes toward selling its own chips.
Q: Why is Arm taking this approach?
A: Arm is seeking to expand its profits and revenues through a range of tactics, including considering whether to sell chips of its own.
Q: Who is Arm competing with in this new strategy?
A: Arm is competing with Qualcomm, one of its largest customers, to sell data centre CPUs to Meta Platforms, and may also be seeking to compete with Nvidia, according to a research note published on Thursday from JPMorgan’s Harlan Sur.
