SoftBank Subsidiary Arm Holdings Plans to Launch Its First Own AI Chips by 2025

This announcement is part of a comprehensive investment of 10 trillion Yen, initiated by SoftBank CEO Masayoshi Son, to make the company competitive in the field of artificial intelligence. According to a Nikkei Asia report, Arm is to build a division for AI chips and develop the first prototype as early as the spring of 2025. Mass production is then expected to start in the fall of the following year.

SoftBank Aims to Invest in Data Centers, Robotics, and Renewable Energy to Realize Son's Vision of an AI Revolution. Son stated at a symposium last July that artificial intelligence "can solve problems as if asking a crystal ball to predict the future." He expressed his conviction that Japan must create the "brightest crystal ball at the center."

Arm will bear the initial development costs for the new AI chips, however, SoftBank plans to make a financial contribution. To secure production capacity, SoftBank is in talks with Taiwan Semiconductor Manufacturing Corp. (TSMC) and other partners.

The AI market is estimated at 30 billion US dollars this year by Precedence Research of Canada and is expected to grow to over 100 billion US dollars by 2029. A market volume of 200 billion US dollars is expected by 2032. Although NVIDIA is currently considered the leading company in the field of artificial intelligence, demand is expected to increase so strongly that the need cannot be met by NVIDIA alone. SoftBank sees a major market opportunity here.

Stock Markets React Positively to Announcements: SoftBank Shares Rose by 1.56 Percent to 8,000 Yen in Tokyo on Monday, Registering a Gain of More Than 27 Percent Since the Beginning of the Year. Arm Shares Also Strengthened by 7.71 Percent at NASDAQ, Reaching 117.23 US Dollars, and Have Already Increased in Value by 56 Percent Since the Start of 2024.