Arm Holdings is expanding its AI silicon presence through a new collaboration with Samsung's System LSI division to develop a 2nm on-device AI accelerator SoC. Arm will provide the AI accelerator architecture and core design IP, while Samsung will handle SoC integration and manufacturing on its SF2 2nm process. Analysts note this deal primarily targets power-efficient, low-latency inference on phones and consumer devices to reduce cloud dependence, a high-volume but lower-margin segment, rather than the data center market where investors might hope for a breakout. Arm's data center focus remains its AGI CPU, with CEO Rene Haas stating demand exceeds $2 billion across fiscal 2027 and 2028.