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Arm CEO Rene Haas said the company is stepping up investment in the potential development of chiplets and integrated solutions, according to a report from Reuters.
As Reuters notes, Haas did not provide a timeline for when these investments might begin to generate profits, nor did he share specifics about potential products in development. However, he did mention that the company is exploring a broad range of chiplet-related possibilities, including “a physical chip, a board, a system, all of the above.”
The company may develop chiplets that can be integrated into custom chips, or it might opt to design complete chips on its own, according to CNBC.
Potential Tensions with Key Customers Like NVIDIA
Arm’s potential move to develop its own chips could potentially place it in direct competition with customers like NVIDIA, which depend on Arm’s intellectual property, as noted by Reuters. The report points out that Arm has been actively hiring talent to support its chiplet and chip development efforts, recruiting from its own customers and competing with them for business opportunities.
High Stakes for Arm’s Chip Strategy
Reuters also notes that if Arm chooses to produce a complete chip, it could significantly reduce the company’s profits and still offer no assurance of success. Developing advanced AI chips can cost over USD 500 million just for the silicon, with additional expenses for the supporting server hardware and software, as the report points out.
As noted by Bloomberg, Arm’s profit forecast for the current period fell short of expectations due to increased spending on new product development. CEO Rene Haas said the company is stepping up investment to better position itself for growing AI demand and has decided to accelerate R&D spending, according to the report.
Arm’s Revenue Guidance and Earnings Decline
Arm announced its quarterly results on July 30. As reported by CNBC, the company expects second-quarter revenue for the fiscal year ending 2026 (FYE26) to range between USD 1.01 billion and USD 1.11 billion, in line with the USD 1.05 billion estimate from analysts surveyed by LSEG. Net income for the three months ended June 30, 2025, fell 42% year over year to USD 130 million, down from USD 223 million in the same period of 2024.
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