CIOInsider India Magazine
Arm Sees Expanding Potential in Southeast Asia
British chip company Arm aims to expand its presence in Southeast Asia, according to its chief commercial officer.
According to CCO Will Abbey, who has been with SoftBank-backed Arm since 2004, the market holds significant potential due to the increasing demand for data centers and artificial intelligence.
Arm plans to grow in Southeast Asia following its announcement of a $250 million partnership with Malaysia earlier this year—marking its first collaboration with a nation. Abbey perceives a chance for a comparable partnership with Singapore.
“We view Southeast Asia as a vibrant center of activity, and we aim to increase our presence in this area,” he stated in an interview following the Fortune Brainstorm AI Singapore. “Demand continues to increase.”
Arm is among the numerous major tech companies exploring business prospects in the area.
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Southeast Asia has attracted billions in data center and AI investments from technology leaders such as Microsoft, ByteDance (the owner of TikTok), and Google due to increasing demand. Experts indicate that the area's neutral geopolitical position is a significant aspect of its attractiveness, especially in periods of increased geopolitical tensions.
A portion of the demand arises from the necessity to store data within the country.
Deloitte stated in a recent report that Southeast Asian players must urgently establish AI-ready data centers to guarantee that data and infrastructure stay onshore amid escalating geopolitical tensions where data has become the new currency.
Through its collaboration with Malaysia, Arm is supplying technology and intellectual property licenses. It will also promote the creation of domestically produced semiconductor products, and will earn royalties on sold chips.
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Arm earns income from licensing fees related to its chip designs and receives royalties for each chip sold. Approximately 10-20 percent of the royalty income is generated from shipments destined for the U.S., with China being one of its major clients
Arm's shares listed on Nasdaq have faced pressure this year because of worries that tariffs might negatively impact the semiconductor industry. The firm refrained from providing forecasts for the year, increasing concerns about how the economic landscape might negatively impact demand.
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Arm earns income from licensing fees related to its chip designs and receives royalties for each chip sold. Approximately 10-20 percent of the royalty income is generated from shipments destined for the U.S., with China being one of its major clients.
