Arm’s evolution from IP for everyone to chipmaker-in-disguise

Moving up the supply chain to compete with customers?

August 1, 2025

David Harold

Arm, long celebrated as a neutral provider of processor IP, is rethinking its model amid rising competition and margin pressure. Under SoftBank, and now post-IPO, Arm has begun developing prototype chips to showcase its designs and even hint at vertical integration. This shift aims to better serve data center and AI markets, while preserving its core licensing business. Since its 2016 acquisition by SoftBank, Arm has wrestled with identity and strategy. Originally the poster child for a high-margin IP licensing model, Arm found itself squeezed by sluggish IoT uptake and rising competition from open-standard RISC-V. Its aborted sale to Nvidia

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Arm’s evolution from IP for everyone to chipmaker-in-disguise

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