ARM, the British semiconductor designer, has announced its ambitious plan to develop and launch artificial intelligence (AI) chips in 2025. This project will be financially backed by the Softbank group, which could take over the new AI-dedicated division.
The company plans to create a specific division for AI chip development, with the goal of building a prototype by the spring of next year. Mass production, to be handled by contracted manufacturers, will begin in the fall of 2024. The initial development costs, which could amount to billions of dollars, will be covered by ARM with significant financial contribution from Softbank.
Softbank, which already has a sizable stake in ARM, is in talks with Taiwan Semiconductor Manufacturing Company (TSMC) to enhance production capabilities. This move could further strengthen ARM’s position in the semiconductor market, particularly in the AI sector.
ARM has been expanding in the hyperscale data center market, where operators are seeking to build their own chips to power new AI models and reduce reliance on dominant providers like Nvidia. This strategy has led to a significant increase in ARM’s market value, now exceeding $100 billion.
ARM is also leading the generative AI revolution in mobile devices. ARM’s technology allows generative AI inferences, such as image and video generation or contextual understanding, to be processed directly on the mobile device rather than relying on the cloud.
New high-performance smartphones, like the vivo X100 and X100 Pro with MediaTek Dimensity 9300 technology, the Samsung Galaxy S24, and the Google Pixel 8, are equipped with ARM’s CPU and GPU v9 technologies. These devices offer unprecedented opportunities for AI innovation, doubling AI processing capabilities every two years over the past decade.
In most cases, the use of AI in mobile devices begins with the CPU. This component handles AI workloads, such as facial and body tracking, advanced camera effects, and segmentation in social applications. ARM’s technology is crucial for enabling these workloads, with CPU designs present in most current smartphones.
According to GlobalData, the chip industry will face technological, geopolitical, and supply chain challenges that will intensify over the next five years. Isabel Al-Dhahir, GlobalData’s Principal Thematic Analyst, warns that the chip industry is vulnerable due to growing technological nationalism and the trade war between the United States and China. These factors destabilize global supply chains and raise concerns about workforce readiness and a potential skills gap.
Despite these challenges, strategies based on political, geographical, and technological diversification are underway. Both companies and countries are seeking to protect themselves against future disruptions, ensuring that the chip industry evolves rapidly.
ARM is taking bold steps to position itself at the forefront of AI chip technology. With the support of Softbank and collaboration with TSMC, the British company is gearing up to launch innovative products that could transform the tech industry. As they approach the 2025 launch, ARM and its partners will need to navigate a complex landscape of geopolitical and supply chain challenges to ensure the success of their next-generation chips.
Source: ARM Press Releases