Arm launches Lumex chips for on-device AI in smartphones and wearables

Arm Holdings launched Lumex, its next-generation mobile chip designs optimized for artificial intelligence that can run on smartphones and wearable devices without internet connectivity. The new designs represent Arm’s strategic push to capitalize on the growing demand for on-device AI processing, offering four variants ranging from energy-efficient options for smartwatches to high-performance versions capable of running large AI models directly on premium smartphones.

What you should know: Lumex encompasses four different chip design types, each tailored for specific device categories and performance requirements.

• The designs range from low-power, energy-efficient versions for smartwatches and wearable devices to maximum-performance variants designed for high-end smartphones.
• The peak performance design specifically aims to run software that harnesses large AI models without requiring cloud computing access.
• All Lumex designs are optimized for 3-nanometer manufacturing processes, such as those offered by TSMC (Taiwan Semiconductor Manufacturing Company), which also produces Apple’s latest iPhone chips.

Why this matters: On-device AI processing is becoming a fundamental expectation for mobile users, driving demand for specialized chip architectures that can handle complex AI tasks locally.

• “AI is becoming pretty fundamental to kind of what’s happening, whether it’s kind of real-time interactions or some killer use cases like AI translation,” said Chris Bergey, senior vice president and general manager at Arm.
• The shift toward on-device AI eliminates latency issues and privacy concerns associated with cloud-based processing while enabling AI features to work without internet connectivity.

Strategic positioning: The Lumex launch is part of Arm’s broader Compute Subsystems (CSS) business strategy to provide more complete, ready-made technology solutions to handset makers and chip designers.

• This approach enables faster product development cycles by offering pre-optimized designs rather than requiring companies to build from scratch.
• The more complete designs for mobile phones and data centers align with Arm’s long-term plans to grow smartphone revenue through various means.
• Arm has also indicated plans to invest more heavily in examining the possibility of manufacturing its own chips, having hired key personnel for this potential expansion.

Market focus: Arm is prioritizing the Chinese market for the Lumex launch, reflecting the concentration of major handset manufacturers in the region.

• The company is holding a dedicated launch event in China on Wednesday to unveil the new designs.
• “Outside of Apple and Samsung, the leading handset makers are located there,” Bergey explained, highlighting the strategic importance of the Chinese smartphone ecosystem.