The chip company Arm Holdings wants to make its first AI chips and plans to release them in 2025, according to a report released on Sunday.
Arm ARM, +5.07% will start making AI chips and have a prototype ready by next spring, according to a report from Japan’s Nikkei Asia on Sunday. The company plans to start mass production through contract manufacturers in the autumn of 2025.
Japan’s SoftBank Group Corp. 9984, +1.56% owns the U.K. chipmaker and will reportedly pay for the first round of development. Nikkei says that the AI chip business could be split off and put under SoftBank once it is up and running.
The report says that SoftBank is already in production talks with Taiwan Semiconductor Manufacturing Corp. TSM, +4.53%, a big company that makes chips.
A report from last week in The Wall Street Journal said that more companies, including Apple Inc. AAPL, -0.69%, are looking to get into the fast-growing AI chip market. Nvidia Corp. NVDA, +1.27% is currently the market leader.
Arm reported its fiscal fourth-quarter earnings last week, which were much higher than what analysts had predicted. However, its annual outlook fell short of the sky-high expectations that had been set. SoftBank is going to report earnings on Monday.
Arm shares have gone down 14% in the last month, but they are still up 45% for the year. In Tokyo, SoftBank shares have gone up almost 60% this year.
