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Arm wants a bigger slice of the chip business

economist.com

February 16, 2026

1 min read

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54/100

Summary

Arm aims to increase its presence in the semiconductor industry by shifting its strategy, as its designs are integral to most smartphones and connected devices but the company does not manufacture chips directly. Customers license Arm's designs, modify them, and produce the chips independently.

Key Takeaways

Arm designs are used in nearly all smartphones and most connected devices, but the company does not sell chips directly.
Arm's business model involves licensing its designs to customers, who then produce the chips themselves, resulting in over 300 billion chips shipped based on its designs.
In 2022 alone, more than 30 billion chips built on Arm's designs were shipped.
The rise of artificial intelligence is prompting Arm to reconsider its existing business strategy in the semiconductor industry.

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Community Sentiment

Mixed

Positives

ARM's focus on IPR and integration into FPGA and larger chip designs could enhance their relevance in AI applications, potentially leading to more efficient processing capabilities.
There is a growing opportunity for ARM in optical computing areas, which could open new avenues for innovation and performance improvements in AI.

Concerns

ARM's legal battles and perceived greed have tarnished its reputation, making it difficult for some to view the company positively in the competitive chip market.
The shift of major customers like Apple and Qualcomm towards custom core designs indicates a potential decline in ARM's licensing revenue and market influence.