SAN FRANCISCO--Advanced Micro Devices Inc. on Monday disclosed new dimensions to a high-profile strategy shift, including plans to make its first original chip designs based on technology licensed from ARM Holdings PLC.

The Sunnyvale, Calif., company announced that it signed an architectural license agreement with ARM, which allows AMD to implement the underlying computing instructions defined by ARM in original ways. AMD said it expects to introduce the first chips based on the license, a design dubbed K12, in 2016.

Companies adopting ARM technology also can license complete processor designs from the company. AMD is taking that approach for its first ARM-based chip, code-named Seattle, which is targeted at server systems.

AMD's previously announced adoption of ARM technology is a major diversification for the company, which since the 1980s has used the same processor technology that rival Intel Corp. popularized in personal computers and later in servers. ARM's technology, meanwhile, is best known for powering smartphones and tablets but is being adapted by AMD and others for the server market.

Besides disclosing the plans for original ARM chips, AMD used an event here to disclose an effort called Project SkyBridge, which is designed to make "pin-compatible" versions of ARM and x86 chips. That means that customers can use the same circuit board for both kinds of chip, which saves money and gives users more flexibility about technology choices.

Products based on Project SkyBridge are expected to arrive in 2015, and will come with built-in graphics. Lisa Su, an AMD senior vice president, said the initial targets of the efforts would be "client" devices for end users--a term that includes PCs and tablets--and "embedded" applications, such as industrial and networking equipment.

Nathan Brookwood, an analyst at the research firm Insight 64, said Project SkyBridge will help makers of tablets and others that would like to save on hardware development costs and make chip decisions late in the development process.

Rory Read, AMD's chief executive, and other AMD executives stressed the company will continue to make x86 chips.

"It's really about the merging of those two ecosystems, and using the best silicon for the right software environment," Ms. Su said.

AMD joins a widening list of companies that have architecture licenses with ARM. They include Apple Inc., which has developed original processor chips for its mobile devices, and Qualcomm Inc., the biggest maker of chips for smartphones, and Broadcom Inc., another big maker of communication chips.

One of AMD's key strengths in the field is its expertise in the 64-bit technology that has become a key requirement for servers, allowing hardware to tap into larger pools of memory. AMD scooped Intel to market with 64-bit x86 chips, for example.

ARM, meanwhile, is eager to finally get its chips into servers and high-performance computing after years of industry discussion about the topic.

"We are going to work with anyone who wants to go very fast," said Simon Segars, ARM's chief executive.

Write to Don Clark at don.clark@wsj.com

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