UK-based semiconductor firm ARM is reportedly developing its own chip in a bid to showcase the capabilities of its products and attract new customers ahead of its highly anticipated initial public offering (IPO) later this year. According to the Financial Times, ARM has tasked its newly formed “solutions engineering” team, led by former Qualcomm executive and Snapdragon designer Kevork Kechichian, to produce the prototype. Sources within the industry have said that the resulting design is more advanced than any semiconductor previously produced. However, ARM has declined to comment on the project and is not expected to sell or license the design to other companies.
While ARM’s business model is based on licensing its architecture to other firms, it may seek to use the chip to make inroads in markets such as PCs, where its components are rare outside of recent Mac computers. ARM recently warned investors of a “significant concentration” risk to its business, with its 20 most important customers accounting for 86% of its revenues in 2022.
