The demand for higher computing power to effectively execute compute-intensive functions and thus more on-chip computing resources is ever increasing. On the other hand, applications that demand larger on-chip Memory bandwidth are continuously emerging. In this paper, we novel on-chip processing element that leverages application-specific processing capabilities. The ARC unit supplements a conventional register file to provide large memory bandwidth, or acts as configurable computing unit to provide higher on-chip computing capacity, depending on the requirement of a specific application. When an out-of-order 8-wide issue superscalar processor is supplemented with the ARC unit to process matrix multiplication, a compute-intensive core function .in most multimedia applications, results show a performance increase of up to 12%. Similarly, a 9% performance enhancement is seen when the matrix multiplication is performed in an out-of-order 4-wide issue superscalar processor supplemented with the ARC unit. The paper also discusses the microarchitecuture level details for the implementation of the ARC unit.