It has been done before, at least according to the article, it appears that there already is competition in this market: Arizona-headquartered Microchip Tech

It has been done before, at least according to the article, it appears that there already is competition in this market: Arizona-headquartered Microchip Technology designs and builds a rival range of 32-bit "Pic" microcontroller, while California-based Atmel offers 32-bit "Avr" products. But doing a bit of fact-checking, it might not be so simple. The Microchip website gives 404 errors when I try to read their press release http://www.microchip.com/pagehandler/en-us/press-release/microchip-introduces-smallest-lowest-cost-pic32-mi.html http://www.microchip.com/pagehandler/en-us/press-release/mic... - not really a good sign, hard to verify any claims. The Atmel TinyAVR devices are small (2mmx2mm) but appear only to be 8-bit and aren't really comparable to the Arm offering.