TAIPEI (Taiwan News) — Chip architecture leader Arm has unveiled its first self-developed data center processor, with Taiwanese companies expected to benefit from its production and deployment, according to CTEE.
The launch marks a shift from Arm’s traditional licensing model to having its own chips manufactured. Arm CEO Rene Haas said the rise of agentic AI has increased the importance of central processing units in data centers, and the new AGI CPU is designed to meet that growing demand.
Taiwanese firms involved in production and deployment include TSMC, Quanta Computer, Asrock Rack, Advanced Semiconductor Engineering, and MediaTek. The AGI CPU will be manufactured using TSMC’s 3-nanometer process.
An AI data center contains the hardware and systems required to run, manage, and deliver AI workloads. In these facilities, the CPU, housed in a machine room, acts as a general-purpose processor, coordinating tasks and executing operations across the infrastructure, according to IBM and Colocation America.
Analysts note that AI computing is shifting from a graphics processing unit-focused model to a CPU–GPU collaborative setup, with CPUs increasingly responsible for scheduling, execution, and data management. This trend is expected to drive strong growth in demand for data center CPUs.
The AGI CPU will be integrated into server racks with help from partners, including Quanta Computer and Asrock Rack. Rising demand for customized AI rack solutions is expected to further highlight the contributions of Taiwanese suppliers.
Other design collaborators for the Arm AGI CPU include Alchip Technologies, Global Unichip, Faraday Technology, Novatek Microelectronics, Insyde Software, and Alcor Micro.
Arm’s move into self-developed chips not only shifts its business model but also strengthens the AI semiconductor supply chain. This transformation, spanning wafer foundries, server systems, and data center deployment, is expected to increase the significance of Taiwanese suppliers in the evolving architecture.
Haas estimates that by 2030, revenue from the chip business could reach NT$479 billion (US$15 billion), while existing IP licensing could grow to US$10 billion, more than quadrupling current total revenue.
