SoftBank-Owned Chipset maker Arm To Make Own Prototype Semiconductor: Report

Chipset maker Arm is mulling to team up with its manufacturing partners, in a bid to develop its own semiconductor.

The Softbank-owned firm traditionally sells its blueprint designs to chip manufacturers, rather than getting involved directly in the development and production of semiconductors itself. Representative image.

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Chipset maker Arm is mulling to team up with its manufacturing partners, in a bid to develop its own semiconductor, the media has reported. The British chipmaker is working to build its own semiconductor to showcase the capabilities of its products, as it seeks to attract new customers and fuel growth following its Initial Public Offering (IPO) later this year, says a report by Financial Times.

The Softbank-owned firm traditionally sells its blueprint designs to chip manufacturers, rather than getting involved directly in the development and production of semiconductors itself. However, Arm would now build test chip with factory partners, stoking fears it could in future compete with its biggest customers.

However, some reports say that Arm does not plan to compete with its own products. Instead, it would intend to demonstrate what mobile processors developed using its technologies can do in devices such as laptops, PCs and smartphones. This is similar to what Qualcomm does by occasionally developing a phone to exhibit the features of its new flagship chipset.

According to multiple industry executives that were quoted as saying by the FT report, Arm's newest chip is “more advanced” than ever before. ARM had started working on it in the past six months. It should be noted that Cambridge, England-headquartered Arm is a major supplier of intellectual property to many chip companies, especially in mobile phones and has partnerships with major chip contract manufacturers.

For example, Qualcomm occasionally manufactures a phone to exhibit the features of its new flagship processor, but this is only a sample product and not for sale. A similar situation applies here.

Chipset-making giant Intel Corp, earlier this month said that it will work with Arm to ensure that mobile phone chips and other products that use Arm’s technology can be made in Intel’s factories.