Arm Plans to Introduce AI Chips in 2025

A recent report from Nikkei Asia said that SoftBank Group’s Arm Holdings is getting ready to start making artificial intelligence (AI) chips. The company hopes to release its first products by 2025.

New Division and Prototype Development

The UK-based semiconductor giant is said to be planning to create a separate division to work on developing AI chips, according to the report. A prototype should be ready by the spring of 2025. Contract manufacturers will make a lot of these chips, and production should start in the autumn of that same year.

According to Arm Holdings, the company will pay for the initial development costs, which could reach hundreds of billions of yen. Reports say that SoftBank is also helping to pay for it. Plans for the future include talking about possibly splitting off the AI chip business from SoftBank once a strong system for mass production is in place.

According to reports, the company is in talks with Taiwan Semiconductor Manufacturing Corp (TSMC) and other chipmakers to make sure they can make enough of these AI chips.

Market Expansion and Investor Speculation

Arm Holdings has been intentionally expanding into the data-center market. People know the company for licencing its chip designs and getting paid royalties. Companies will not have to rely as much on big names like Nvidia because of this move. This is because advanced AI models need custom chips more and more.

It’s been easy to see how excited investors are. Since its IPO in September, people have bet that Arm will be able to cash in on the AI computing boom. This has caused the share price to double. Arm Holdings, whose market value is now over $100 billion, looks like a strong player in the semiconductor market, which changes quickly.

Arm Holdings and SoftBank would not talk about the specifics of the Nikkei report, even though all of these are good signs. However, SoftBank’s earnings report is fast approaching, and investors are very interested to learn what the company plans to do to grow in the future. This is because SoftBank has a lot of cash on hand and a big stake in Arm Holdings. Recently, interest in AI technology has caused the share price of Arm Holdings to go up.