- Arm moves closer to silicon production and risk strained ties with large partners
- Strategic hiring reveals Arm’s in -depth ambition to design complete chips independently
- Sinnos Amazon Track Record signalizes arms growing focus on artificial intelligence
Arm, which is long joked to consider building its own chips, reportedly moving on with his “Picasso” project, which potentially competes with larger customers, while also planning royalty hiking trips.
Long known for licensing its process word design to customers rather than producing their own chips, arm has made some strategic hires, including engineers with backgrounds of larger companies, such as Nicolas Dube from HPE and Steve Halter working on Intel and Qualcomm.
The latest addition is Rami Sinno, a former Vice President of Engineering at AWS’s Annapurna Labs, where he directed the development of Amazon’s “Trainium” and “Inferentia” processors tailored to artificial intelligence workload.
Investment and ambition
Sinno had previously played a key role in Amazon’s efforts to build chips that could underestimate Nvidia’s dominance in AI computing, both on price and performance.
Arm’s latest feature suggests that the company strengthens its ability to design complete chips and systems.
Its design supports almost every smartphone on the market, and in recent years it has also gained traction on servers that were once dominated by Intel and AMD.
As it edges closer to producing its own silicon, the market dynamics are set to change and arm puts money aside to reach its target.
In July 2025, Arm revealed that it would assign part of its profit to build not only traditional chips but also chiplets.
These smaller, specialized components can be sewn together into larger systems, a strategy that has increasingly been adopted throughout the industry.
CEO Rene Haas has described this as a natural expansion of Arm’s design business, moving into areas where the company is currently providing intellectual property but has not finished hardware.
Until now, Arm’s income has been highly dependent on the royalties it collects from chipmakers who integrate its design into their products.
But with data centers changing against arm -based servers, the company seems to be looking for an opportunity to sell more complete solutions.
Such a movement could put it in direct competition with its largest customers, including Apple, Qualcomm and Nvidia, all of which are dependent on Arm’s intellectual property.
According to industry experts, this carries strategic risks.
Arm could alienate companies that form the backbone of their business while trying to challenge anchored rivals on the server and AI markets.
The company’s attempts to raise royalty rates can also create another source of excitement with partners.
While the hiring of Sinno and other experienced leaders emphasizes the seriousness of the arm, it is to what extent the company can transform from a design house into a chipmaker uncertain.
Via Pakinomist
