📱Arm Holdings: bold transformation on the horizon!

Arm Holdings $ARM, the technology company behind the architecture of most of the world's chips, is planning major changes that could shake up the industry. Not only is the company planning to increase licensing fees by up to 300 %but is even considering making its own chips. This would turn the key supplier into a competitor for its biggest customers such as Apple, Qualcomm and Samsung. 💡

💻 What exactly are Arm planning?
Known as a creator and provider of chip architectures, Arm's technology powers smartphones, servers and computers thanks to its energy efficiency. The plans, which they refer to internally as Project Picasso, extend through 2019. The company wants to increase its annual revenue from smartphone technology sales by $1 billion over the next decade.

🗝️Klíčem is: Increased royalties for the latest Armv9 chip architecture.

The ability to develop chips and chipsets in-house, which would mean direct competition with traditional customers.

📊 Facts and figures:
Arm revenue in 2024: $3.23 billion.
Apple's revenue from hardware powered by Arm chips: more than 90× Higher.

Arm has so far operated as a technology provider, earning a small royalty on each chip produced.

CEO Arm Rene Haas a Masayoshi Son, CEO of the parent company SoftBank, believes the current model is no longer profitable enough. They plan to make Arm a greater share of the value it helps create.

During the 2022Qualcommlawsuit , it was revealed that Arm had already discussed producing complete chip designs as well. Executives believe the move may bring the company more independence, but it also raises questions: Will Arm become the "enemy" of its existing customers?

💭 "Changing the rules of the game always brings risks."
Experts warn that direct competition could deter customers like Apple or Qualcomm, which have the capacity to develop their own chips from scratch.

✅Opportunity: Custom chips could significantly boost sales and strengthen position Arm as a technology leader.

❌Risk: Potential loss of key customers and huge costs associated with developing and manufacturing its own products.

How do you see ARM's future, do you think this is a possible step in the right direction?