British chip designer Arm Holdings has plans to develop AI chips after in a move to capitalise on the burgeoning demand for artificial intelligence (AI) computing. According to a report by Nikkei Asia, Arm intends to establish a dedicated AI chip division and aims to roll out its first products by 2025.
The UK-based company is set to finance the initial development costs, which could amount to hundreds of billions of yen, with additional contributions from SoftBank Group, its parent company. Arm reportedly plans to kickstart the production process by spring 2025, with mass production handled by contract manufacturers.
Negotiations are reportedly underway with Taiwan Semiconductor Manufacturing Corp (TSMC) and other manufacturers to secure production capacity.
The move by Arm comes amid a growing trend among tech companies to develop specialised hardware tailored for AI applications. By venturing into AI chip development, Arm aims to expand its presence in the data-centre market, catering to operators looking to build their own chips to power new AI models and reduce reliance on dominant suppliers like Nvidia.
Investor enthusiasm surrounding Arm's potential in the AI computing space has driven a surge in its share price since its initial public offering last September, propelling its market value to over USD 100 billion. SoftBank, which holds a significant stake in Arm, is expected to leverage this growth potential as it seeks new avenues for investment amid its upcoming earnings report.
