Arm Plans to Launch AI Chips by 2025
Image Credit: Jacky Lee | Art Director, TheDayAfterAI News Channel
Arm Holdings, a subsidiary of SoftBank Group, is set to develop and launch its own artificial intelligence chips by 2025, according to a report by Nikkei Asia. This move marks a significant expansion for the UK-based chip designer, which is known for licensing its chip designs and earning revenue through royalties.
Setting Up a New AI Chip Division
Arm is establishing a dedicated AI chip division, aiming to produce a prototype by spring 2025. Mass production is expected to begin in autumn 2025, handled by contract manufacturers. The initial development costs, which may run into hundreds of billions of yen, will be covered by Arm with financial support from SoftBank.
Collaboration with TSMC
To secure production capacity, Arm is already in negotiations with Taiwan Semiconductor Manufacturing Corp (TSMC) and other potential manufacturers. This strategic partnership aims to ensure a smooth and efficient mass-production process for the new AI chips.
Expanding into the Data-Centre Market
Arm has been making strides into the data-centre market, targeting operators who seek to develop their own chips for powering new AI models. This move is intended to reduce reliance on Nvidia, the current dominant supplier in this space. The potential surge in AI computing has already significantly boosted Arm's market value.
Financial Outlook and Growth Investments
As SoftBank prepares to report its earnings, investors are keenly observing for indications of new growth investments. Despite expected financial setbacks, SoftBank's substantial liquidity and its significant holding in Arm, whose share price has surged, present promising opportunities for future growth.
