Nikkei Reports: Arm Holdings Set to Unveil AI Chips in 2025

Nikkei reports that Arm Holdings plans to launch AI chips in 2025. Stay informed about the latest developments in semiconductor technology and Arm's strategic move towards advancing artificial intelligence capabilities with its upcoming chip release.

May 12 (Reuters) - According to Nikkei Asia, SoftBank Group's (9984.T) subsidiary, Arm Holdings (O9Ty.F), intends to venture into artificial intelligence (AI) chip development, targeting the release of its initial products by 2025. Arm, headquartered in the UK, plans to establish an AI chip division and aims to have a prototype ready by spring 2025, with mass production handled by contract manufacturers anticipated to commence in autumn 2025.

Arm will cover the initial development expenses, projected to reach hundreds of billions of yen, with additional contributions from SoftBank, as per the report. Following the establishment of a mass-production framework, there is potential for the AI chip business to be spun off and integrated into SoftBank, the newspaper stated. SoftBank is reportedly in discussions with Taiwan Semiconductor Manufacturing Corp (TSMC) and other entities regarding manufacturing partnerships, aiming to secure production capacity.

Arm and SoftBank declined to provide comments, and TSMC did not immediately respond to requests for comment. The British chip designer, known for licensing its chip designs and generating revenue through royalties, has been expanding into the data-center market. This move comes as data-center operators seek to develop their own chips to power new AI models and reduce dependency on dominant suppliers like Nvidia. SoftBank is anticipated to report losses in its upcoming earnings announcement on Monday. Investors are keen to learn about potential new growth investments, considering SoftBank's substantial liquidity and the increased market value of its significant holding in Arm, which surged in February due to excitement surrounding AI developments.

Source: Reuters