ARM Mulls Substantial Hike in Chip Design Licensing Fees and Eyes Self-Chip Development
2025-01-14

Chip technology provider ARM Holdings is contemplating a significant increase in chip design licensing fees by as much as 300%, alongside exploring self-chip development to bolster its revenue streams. Dubbed internally as "Picasso," this strategy was initiated in 2019 with the objective of augmenting annual smartphone-related revenue by approximately $1 billion over the next ten years. ARM intends to achieve this by hiking the licensing fees for pre-designed chip modules that leverage its cutting-edge ARMv9 architecture. Nonetheless, major clients like Qualcomm and Apple, who possess the capability to design chips independently, might remain unaffected by this fee increase. Furthermore, ARM is evaluating a transition from selling chip design blueprints to directly selling chips or chipsets, a shift that could potentially pose a threat to its customer base.