Arm, a SoftBank Subsidiary, Ventures into AI Chip Development Amid Profit Surge

Arm, a processor designer under SoftBank's ownership, announces plans to delve into in-house artificial intelligence (AI) chip development following a surge in AI-related profits.

According to a report from Nikkei Asia on May 13, Arm is establishing a division dedicated to AI chip development, with the first prototype slated for release by spring 2025 and mass production expected by autumn of the same year.

Initial development costs, estimated to be in the hundreds of billions of yen, will be covered by Arm, with contributions from SoftBank, which holds a 90% stake. Post-mass production, there's potential for the AI chip business to become a standalone entity under SoftBank's umbrella.

SoftBank is reportedly in discussions with Taiwan Semiconductor Manufacturing Corp and other firms to secure production capacity for the chips.

Arm provides technology utilized in the primary chips of "nearly all smartphones and tablets," boasting over 90% market share in processor architecture for smartphones.

Moreover, Arm supplies architecture to Nvidia, a leading AI chip developer. By creating its own chips for advanced AI models, Arm aims to reduce dependence on Nvidia.

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