Article

Arm Holdings is pivoting from a licensing-focused model to a more integrated role in the semiconductor industry under SoftBank's leadership. The company aims to increase royalty rates, design its own chips, and pursue vertical integration to capitalize on the AI boom.

This strategy includes raising royalties on high-value chips and developing custom chip designs for data centers. However, tensions with licensees like Qualcomm and competition from RISC-V pose risks to Arm's ambitions. Nvidia has sold its remaining stake in Arm, allowing it to focus on AI hardware dominance without conflicts of interest.