Softbank’s Arm to Launch AI Chips by 2025 

Softbank’s Arm which is a subsidiary, is planning to introduce its own AI chips by next year, making a major step in establishing its own AI chip unit for model development. 

According to Nikkei Asia, to achieve its goal, the UK based chip manufacturer is conducting discussions with several contract manufacturers, including Taiwan’s Taiwan Semiconductor Manufacturing Company Limited (TSMC), set to start in the fall of next year. 

Softbank’s Arm, known for the architecture of its chips, is considered the base of various chips. Moreover, the company takes the approval for the design of its chips from major chipmakers, such as Nvidia and Qualcomm, which lead it to earn high incomes from each sale. 

Conversely, Softbank’s Arm is set to cover the expenses of the initial development of its AI chips, which could reach hundreds of billions of yen. After establishing the system of the mass production of the chips, the British manufacturer is planning to potentially split the AI chip division and integrate it into Softbank’s operations. 

Meanwhile, Arm’s shares have increased by almost 45% this year, with a market cap of over $113 billion, according to data from the London Stock Exchange. Arm was purchased by Softbank in 2016 for $32 billion and listed on Nasdaq last year.  

Led by the Japanese entrepreneur Masayoshi Son, the company is heavily investing in AI and is reportedly intending to invest $960 million by next year, aiming at enhancing its computing facilities for generative AI. Son also stated that the company is looking forward to leading the AI revolution. 

In the future, Softbank’s Arm plans to build AI data centers across the U.S., Europe, Asia, and the Middle East by 2026, powered by its own chips. 

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