According to a report published on Sunday, Arm Holdings, a chip designer, plans to develop its first artificial intelligence chips and release them in 2025.
Arm ARM, +5.07% will establish an AI chip branch and introduce a prototype by the spring of next year, according to a report published on Sunday by Japan’s Nikkei Asia. The company plans to begin mass production through contract manufacturers in the fall of 2025.
Japan’s SoftBank Group Corp. 9984, 1.54%, owns a controlling stake in the U.K.-based chipmaker and is expected to cover the chip maker’s first development expenditures. Nikkei claims that after the AI chip company is operating profitably, it may be split off and absorbed by SoftBank.
According to the source, SoftBank and Taiwan Semiconductor Manufacturing Corp. TSM, +4.53%, a major manufacturer of chips, are already in manufacturing negotiations.
As of last week, a Wall Street Journal story, more businesses, including Apple Inc. AAPL, -0.69%, is trying to expand into the rapidly developing AI chip market, which is now controlled by Nvidia Corp. NVDA, +1.27%.
Last week, Arm released its fiscal fourth-quarter profits, exceeding analysts’ expectations yet falling short of the company’s extremely high yearly outlook. On Monday, SoftBank is expected to release its earnings.
Although arm shares have decreased 14% in the last month, they have still increased 45% in the year. Tokyo trading has seen an almost 60% increase in SoftBank shares this year.
