Arm Holdings Plans Price Hike and Chip Development

Arm Holdings is planning to increase its prices by as much as 300% while exploring the development of its own chips, potentially positioning itself in direct competition with major customers like Qualcomm and Apple. This strategy, known as the 'Picasso' project, aims to significantly boost Arm's revenue share, which currently pales in comparison to its larger clients—Apple's revenue from hardware powered by Arm chips is over 90 times greater than Arm's own revenue of $3.23 billion for fiscal year 2024. The plans have emerged in the context of ongoing legal disputes with Qualcomm, where Arm sought higher licensing fees. Internal discussions revealed during a trial suggested that Arm's CEO, Rene Haas, is confident about transitioning from providing blueprints to producing complete chip designs. This potential shift has raised concerns among industry observers, who fear it could disrupt existing customer relationships. Arm is also reportedly in talks to acquire Ampere Computing, further signaling its ambition to expand its role in the semiconductor market.