Arm’s Strategic Shift to In-House Chips Sends Shares Plummet 5% Amid $650M Surge in Trading Volume Ranking 147th in Market Activity

Arm Holdings (ARM) fell 5.00% on Aug. 19, with a trading volume of $0.65 billion—up 59.83% from the previous day—ranking 147th in market activity. The decline comes amid strategic shifts as the company accelerates its transition from licensing chip architecture to developing in-house semiconductor solutions.

Arm has recruited Rami Sinno, former director of Amazon’s AI chip division, to lead its push into full-chip design. Sinno previously oversaw development of Amazon’s Trainium and Inferentia AI processors, which aim to rival Nvidia’s offerings. This move follows earlier hires, including Nicolas Dube from HPE and Steve Halter from Intel and Qualcomm, signaling a broader effort to build systems-level expertise. CEO Rene Haas outlined plans in July to reinvest profits into chiplets—modular components—and complete systems, marking a departure from Arm’s traditional IP licensing model.

The company, majority-owned by SoftBank, has long supplied architecture for Apple and Nvidia chips. Its expansion into physical chip production could position it as a direct competitor to AMD and Intel in data centers, while challenging its existing clients. A new “state-of-the-art” facility in Galway, Ireland, opened in July to support research into semiconductor innovations, aligning with the country’s national semiconductor strategy.

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