Owned by SoftBank Group, Arm Holdings is planning to enter the artificial intelligence chip market
Arm Holdings, a prominent player in the tech industry and a subsidiary of SoftBank Group, has unveiled ambitious plans to venture into the development of artificial-intelligence chips, as reported by Nikkei Asia. This strategic move entails the establishment of a dedicated division within the UK-based Arm, solely focused on advancing AI chip technology. According to the report, the timeline for this endeavor is well-defined, with the goal of producing a prototype by the spring of 2025, followed by the commencement of mass production in the autumn of the same year.
Financially, the endeavor will be a collaborative effort, with Arm taking responsibility for the initial development costs, which are projected to potentially reach hundreds of billions of yen. SoftBank, as the parent company, is poised to contribute to the funding, underscoring its commitment to the project. Moreover, there are indications that once the manufacturing process is streamlined and operational, there could be discussions about spinning off the AI chip business into a separate entity under the umbrella of SoftBank.
In anticipation of the production phase, negotiations are already underway with key players in the semiconductor industry, notably Taiwan Semiconductor Manufacturing Corp, to secure manufacturing partnerships and ensure a seamless transition to mass production. This proactive approach underscores the significance of securing production capacity and solidifying strategic partnerships to effectively execute Arm’s foray into AI chip development.
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