ARM have been moving away from chips with small area for a long time (see server SoC which are huge beasts), and are trying to become the standard platform for everyone trying to have custom hardware.
In this space, chiplets makes a lot of sense: you can have a compute chip with standard arm cores which is reused across your products, and add an extra chiplet with custom IPs depending on the product needs. That is for example what (as far as I'm aware) Huawei is doing: they reuse the chiplet with arm cores in different product, then add for example an IO+crypto die in the SoC in their routers/firewalls products, etc.
In this space, chiplets makes a lot of sense: you can have a compute chip with standard arm cores which is reused across your products, and add an extra chiplet with custom IPs depending on the product needs. That is for example what (as far as I'm aware) Huawei is doing: they reuse the chiplet with arm cores in different product, then add for example an IO+crypto die in the SoC in their routers/firewalls products, etc.