SoftBank's Arm to reportedly launch AI chips by 2025 to capture explosive demand

Arm, in which SoftBank has a 90% stake, will set up an AI chip unit to build a prototype by spring 2025, according to Nikkei Asia.

SoftBank is in discussion with contract manufacturers including Taiwan's TSMC to produce the AI chips, the report added. Mass production is slated to begin in the fall of 2025. Arm shares have risen nearly 45% so far this year, and its market capitalization stands at over $113 billion, according to LSEG data.

Arm logo displayed on a screen and and microchip are seen in this illustration photo taken in Krakow, Poland on September 14, 2023.The U.K.-based chip designer, in which SoftBank has a 90% stake, will set up an AI chip unit to build a prototype by spring 2025, according to the report on Sunday.The company will bear the initial development costs of the AI chips, which could reach "hundreds of billions of yen," according to the report.

Arm shares have risen nearly 45% so far this year, and its market capitalization stands at over $113 billion, according to LSEG data. The company wasSoftBank is looking to build AI data centers, powered by homegrown chips, across the U.S., Europe, Asia and the Middle East as soon as 2026, Nikkei said.

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