Arm aims to launch AI chips in 2025: report

By Mike Murphy

Chip designer Arm Holdings is seeking to develop its first artificial-intelligence chips, with an eye on launching them in 2025, according to a report Sunday.

Japan's Nikkei Asia reported Sunday that Arm (ARM) will set up an AI chip division and launch a prototype by next spring, with aims of mass production through contract manufacturers starting in fall 2025.

The U.K.-based chipmaker is controlled by Japan's SoftBank Group Corp. (JP:9984), which will reportedly pay for the initial development costs. According to Nikkei, once the AI chip business is up and running, it could be spun off and placed under SoftBank.

SoftBank is already in production talks with chip-making giant Taiwan Semiconductor Manufacturing Corp. (TSM), according to the report.

The AI chip market is currently dominated by Nvidia Corp. (NVDA), but more companies are looking to expand into the fast-growing area, including Apple Inc. (AAPL), according to a Wall Street Journal report last week.

Arm reported fiscal fourth-quarter earnings last week, smashing analysts' estimates but falling short of sky-high expectations for its annual outlook. SoftBank is scheduled to report earnings Monday.

Arm shares have slipped 14% over the past month, but are still up 45% year to date. SoftBank shares have jumped nearly 60% this year in Tokyo trading.

-Mike Murphy

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05-12-24 1802ET

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