Arm Plans 136-Core 300W AGI CPUs, Aiming for $15B Chip Sales in 5 Years
Arm Holdings will start selling its own 136-core, 300W AGI CPUs produced by TSMC, targeting $15 billion in chip sales and $25 billion in total revenue within five years. The shift aims to boost gross profit dollars from chip sales to $500 per $1,000 chip versus $100 from design licenses.
1. Launch of AGI CPUs
Arm will begin selling its own chips for the first time, offering an AGI CPU with up to 136 cores and a 300-watt power draw, produced by TSMC to address data center workloads.
2. Key Customer and Production
Meta Platforms is the inaugural buyer of Arm’s AGI CPU, demonstrating confidence in Arm’s shift from licensing to direct product sales and leveraging TSMC’s advanced process technology.
3. Revenue and Sales Goals
The company projects $15 billion in annual chip sales and total revenue of $25 billion within five years, with its IP licensing business still expected to grow to around $10 billion in the same period.
4. Profit Dollar Maximization
Arm’s CFO highlighted that selling chips directly could yield about $500 in gross profit per $1,000 chip, compared to roughly $100 from design licensing, driving a strategic move toward higher profit dollars.