Arm confirms it will make its own chips for the first time

In short: Arm says it will start producing its own chips, a major shift from only licensing its chip designs to other companies.

What happened

Arm CEO Rene Haas confirmed that Arm plans to make and sell its own chips for the first time. Arm is best known for designing the “brains” used in many devices, then licensing those designs to other companies, which manufacture and sell the finished chips (like an architect selling blueprints).

In interviews reported from Davos in January 2026 and later coverage, Haas said the move is meant to improve supply chain resiliency and to fill gaps that Arm’s partners want addressed. On March 24, 2026, Reuters reported Haas estimated the new chip line could reach about $15 billion in annual revenue within five years. After the estimate became public, Arm’s share price jumped.

Haas also addressed concerns that Arm could upset its current customers and partners, such as Nvidia, by becoming a chip seller itself. He said Arm is not trying to disrupt its core licensing model, and that the new chips are aimed at specific needs where partners want “more optionality” in software. In simple terms, he is saying customers want more choices in how they build and run software on top of Arm-based systems.

Why it matters

Many everyday products, from phones to cloud services, rely on chips built from Arm designs. If Arm starts selling its own chips, it could change how the chip supply chain works and who makes money from it, even if Arm says it will avoid direct competition with its partners. For the public, the biggest impacts to watch are whether this leads to more reliable chip supply and whether it affects the cost and availability of devices and online services over time.

Source: Wired