July 31, 2025 – Today, Arm unveiled its financial results for the first quarter of the 2026 fiscal year, which ended on June 30, 2025. Alongside these figures, the company disclosed its strategic plan to allocate a portion of its profits towards the development of its own chips and other components.
In an interview with Reuters, Arm’s CEO, Rene Haas, revealed that the company has already developed chips known as Compute Sub Systems (CSS), which act as “physical carriers”. Arm is now set to ramp up its investment efforts, going beyond just chip design. The company is considering taking the bold step of manufacturing some of its own products, including chiplets, and potentially even offering complete solutions.
However, Reuters pointed out that if Arm decides to fully enter the chip manufacturing arena, it could have a negative impact on the company’s profit margins. Moreover, there is no guarantee of success in this highly competitive and capital – intensive field. For instance, the cost of the silicon alone for advanced AI chips can exceed $500 million, and the expenses associated with the server hardware and software required to support these chips can be even higher.
When questioned about when the company’s new investment strategy would start generating profits or for details about potential new products under this plan, Haas remained tight – lipped. He did emphasize, though, that Arm’s focus would be on the entire chip ecosystem, encompassing “a physical chip, a circuit board, a system, and everything in between.”
