Arm Holdings, a SoftBank Group Subsidiary, Targets 2025 for Launch of New AI Chips, According to Nikkei Asia

SoftBank Group’s subsidiary, Arm Holdings, is reportedly developing AI chips for mass production by 2025. The UK-based chip design firm is to establish a new division by the spring of 2025 to be able to make an AI chip prototype. Mass production, on the other hand, is envisioned come the fall of the same year at a contract manufacturer.

Although the initial expense of the development will be reportedly born by Arm, SoftBank will provide financial support, potentially even in the hundreds of billions of yen. There is also a plan to maybe spin off the AI chip business under the umbrella of SoftBank once mass production is under way. SoftBank, among other companies, is in talks with Taiwan Semiconductor Manufacturing Corp. Arm and SoftBank did not respond to comments, while TSMC did not answer the inquiries.

Long a licensor of chip designs and an earner of royalties, Arm is moving into the data center to fill demand for AI-driven chips and lessen its dependence on NVIDIA. SoftBank, which is expected to post a financial loss, was looking to cash in its own large stake in Arm, whose share value nearly doubled in February from gains related to the excitement around AI.