- ARM is closer to silicon manufacturing, risking tense ties with the main partners
- Strategic hiring reveals the deepening ambition of ARM to design completely chips independently
- The Amazon of Sinno record indicates the growing approach to the artificial intelligence
According to reports, ARM, rumorea that is considering building its own chips, is advancing with its “Picasso” project, which potentially competes with the main clients and also plans royalty increases.
Known for the license of their processors designs to customers instead of making their own chips, ARM has made some strategic hiring, including engineers with funds in the main companies, such as Nicolas Dube of HPE and Steve Halter, who worked in Intel and Qualcomm.
The latest incorporation is Rami Sinno, former Vice President of Engineering from Annapurna Labs of AWS, where she directed the development of “work” and “inferencia” processors of Amazon adapted for artificial intelligence workloads.
Investment and ambition
Sinno had previously played a key role in Amazon’s effort to build chips that could undermine Nvidia’s domain in AI computing, both in price and performance.
ARM’s latest movements suggest that the company is strengthening its ability to design complete chips and systems.
His designs support almost all smartphones in the market, and in recent years, he has also won traction on the servers once Dominated by Intel and AMD.
As you advance closer to producing its own silicon, the dynamics of the market changes, and Arm is leaving aside the funds to achieve its goal.
In July 2025, ARM revealed that he would assign part of his profits to build not only traditional chips but also Chiplets.
These smaller and specialized components can be joined in larger systems, an increasingly adopted strategy throughout the industry.
The CEO Rene Haas has described this as a natural extension of the ARM design business, which moved to areas where the company currently provides intellectual but not finished hardware.
Until now, ARM’s revenues have depended largely on the royalties collected from chips manufacturers that integrate their designs into their products.
However, with data centers that change to ARM based servers, the company seems to see the opportunity to sell more complete solutions.
Such movement could put it in direct competition with its largest clients, including Apple, Qualcomm and Nvidia, all of which depend on the intellectual property of ARM.
According to industry experts, this entails strategic risks.
ARM could alienate companies that form the backbone of their business while trying to challenge rivals rooted in server and AI markets.
The company’s attempt to increase royalty rates can also create another source of voltage with the partners.
While the hiring of Sinno and other experienced executives underlines the seriousness of the arm, the extent to which the company can transform a design house into a chips manufacturer remains uncertain.
Through PakGazette
