The UK-based chip designer pivots to selling its own chips, securing Meta as its first major customer, and challenging long-time industry partners.

Arm stock rallied on news that the company is planning to introduce its own chip and has secured Meta as a customer.

Arm Holdings plans to launch its own chip this year after securing Meta Platforms as one of its first customers, in a major shift to its model of licensing its blueprints to other companies, the Financial Times reported on Thursday.