It can be really bad for the industry if ARM is both a producer of chips and the gatekeeper within the ARM ecosystem. I don't know if there are laws against this or loopholes through them, but what is going to prevent them from just withholding license or technologies to push competition out?
Understanding the headline requires prior knowledge of the industry and ARM specifically.
Even without reading the article, I know that ARM is one of the only CPU companies I know of that designs CPUs but doesn't actually manufacture any of them for sale themselves. They license their CPU designs to other companies that use them in their own products which is why Apple can make their M silicon ARM CPUS for iOS devices and Qualcomm can their Snapdragon CPUs smartphone CPUs.
What this article headline is saying that ARM, for the first time, is manufacturing its own CPUs and not just licensing their tech to others to do so. Further, ARM is apparently poaching employees from their licensees that have ARM CPU knowledge to do it.
Arm reportedly to start competing with its own customers this year.
A few decades ago, this used to be a sure recipe for losing customers and marketshare, but the world has changed, maybe because the chip market lacks real competition, of course there is competition, but the number of players are too few, and they are too specialized for direct competition.