Arm CEO Rene Haas has revealed that the company is stepping up investment in the potential development of chiplets and integrated solutions.
Jul. 31, 2025 –
According to a report by Reuters, while Haas did not provide a timeline for when these investments might begin to generate profits, or give any details about potential products that were in development, he did say that the company was exploring a broad range of chiplet-related possibilities, including “a physical chip, a board, a system, all of the above.”
Arm could be looking to develop chiplets that can be integrated into custom chips, or to design complete chips on its own.
If Arm does move forward with this then it could potentially place it in direct competition with customers such as NVIDIA, which use the company’s intellectual property. Arm has been actively hiring talent to support its chiplet and chip development efforts, according to reports, and has been recruiting from its own customers and competing with them for business opportunities.
If Arm was to develop a complete chip, as has been suggested, it would have a major impact on the company’s profits as developing advanced AI chips can be expensive - $500 million just for the silicon.
Arm also announced its quarterly results and expects second-quarter revenue for the fiscal year ending 2026 (FYE26) to range between $1.01 billion and $1.11 billion. Net income for the three months ended June 30, 2025, fell 42% year over year to $130 million, down from $223 million in the same period of 2024.
Arm’s profit forecast for the current period fell short of expectations due to increased spending on new product development, which Haas said was intended to better position the company for growing AI demand.
According to Arm, more than 70,000 companies now run AI workloads on Arm Neoverse data centre chips, which is a 40% increase y-o-y and a 14x surge since 2021. Arm’s Neoverse CPUs are used to power the custom silicon of NVIDIA Grace, AWS Graviton, Google Axion, and Microsoft Cobalt. It expects the market share of Arm Neoverse-based chips shipped to top hyperscalers to reach nearly 50% this year.