Arm has plans to produce its own chips according to documents filed in a recent case against Qualcomm. By producing its own chips, Arm will compete directly with its customers such as Apple and Qualcomm. So far, Arm has only sold licenses to use their architecture used in chips for smartphones, tablets, smartwatches and computers.
In the same document, Arm has plans to increase the price of licenses to use their technology by up to 300%. This is to increase the company's revenue by $1 billion over a decade. Although Arm's technology is the basis of the chips that now dominate global smart devices, it only recorded revenue of $3.23 billion in fiscal year 2024.
The high license fees were the reason why Qualcomm was dragged to court by Arm last month with them threatening to cancel the license because Qualcomm was accused of violating the terms and conditions. Qualcomm, however, was found not guilty of paying a lower license to produce chips for its partner Nuvia, which it acquired in 2021.