SoftBank subsidiary Arm is set to venture into producing artificial intelligence chips and plans to release its first products next year. This move will see Arm joining other giants in producing its own AI chip.
Based in the UK, Arm will establish an advanced AI chip division as part of SoftBank CEO Masayoshi Son’s plan to transform the company into an AI superpower. The company aims to prepare a prototype in this division by spring 2025 and begin shipping the chip by the fall of the same year.
Arm to Produce AI Chips
Arm, owned by SoftBank, will soon develop artificial intelligence processors. SoftBank CEO Masayoshi Son will establish an AI chip division with an investment of 10 trillion yen ($64 billion). The division will develop prototype processors in early next year, followed by mass production starting by the end of 2025. This production is expected to take place at a chip manufacturer like TSMC, Samsung Foundry, or Intel, with TSMC being the most likely candidate.
SoftBank plans to build data centers using its own processors in the US, Europe, Asia, and the Middle East by 2026. Given the energy-intensive nature of data centers, the company is expected to address energy concerns as well. There are speculations that the company might delve into renewable energy sources like wind and solar, along with next-generation fusion technology.
Reportedly, SoftBank will cover the initial development costs, estimated to be in the billions, for the AI chip division. Once the processor is ready for mass production, SoftBank may separate this chip unit from Arm. Additionally, it’s uncertain whether Arm will offer its design to customers. The AI market is expected to reach $30 billion this year, with projections exceeding $100 billion by 2029 and $200 billion by 2032.
