Arm, a UK-based semiconductor company majority-owned by SoftBank, is set to start manufacturing its own chips this year, a significant departure from its traditional business model of licensing chip blueprints to other companies. This strategic shift is driven by the company's recent partnership with Meta, which has signed on as Arm's first customer for its custom-designed CPU chips.

The CPU chips, designed for servers in large data centers, will be customizable for various customers, offering a unique value proposition in the market. While Arm will outsource the production of these chips, the company's decision to manufacture its own products marks a notable change in its business strategy. This move is likely to turn some of its existing customers, such as Apple and Nvidia, into competitors, as they will now be vying for market share with Arm's own products.

The first in-house Arm chip is expected to be unveiled as early as this summer, according to a report by the Financial Times. This rapid turnaround is a testament to Arm's ability to adapt quickly to changing market conditions and capitalize on emerging opportunities. The company's decision to manufacture its own chips is likely driven by the growing demand for customized server chips, particularly in the data center market.

The partnership with Meta is a significant win for Arm, as it provides a high-profile reference customer for its custom-designed chips. Meta's adoption of Arm's chips will likely influence other companies in the industry, potentially driving further adoption and growth for Arm's manufacturing business. While details of the partnership remain scarce, it is clear that Arm's decision to manufacture its own chips has significant implications for the semiconductor industry as a whole.

TechCrunch has reached out to both Meta and Arm for comment, and will update this story if more information becomes available. As the semiconductor industry continues to evolve, Arm's strategic shift is likely to have far-reaching consequences, and this development will be closely watched by industry observers and competitors alike.

In the broader context, Arm's decision to manufacture its own chips highlights the growing trend of customization in the semiconductor industry. As companies increasingly demand tailored solutions to meet their specific needs, chip manufacturers are being forced to adapt and innovate to remain competitive. Arm's move is likely to drive further innovation in the industry, as companies seek to differentiate themselves and provide unique value propositions to their customers.