Arm Holdings to Launch New Division for AI Chip Development

Arm Holdings to Launch New Division for AI Chip Development

Léa Dubois
1 min read

Arm Holdings Plans to Establish New Division for AI Chips, Backed by SoftBank Group

Arm Holdings, a renowned chip designer, is making strides toward creating a dedicated division focused on the development of artificial intelligence (AI) chips. The U.K.-based company is set to absorb the initial development costs, with potential support from its majority stakeholder, SoftBank Group. The fruition of this AI chip is projected for mass production by 2025, signaling Arm Holdings' firm commitment to innovation within the chip industry and the burgeoning significance of AI technology.

Key Takeaways

  • Arm Holdings Plc to establish a separate division for AI chips by 2025
  • U.K.-based Arm to cover initial development costs
  • Potential contribution from majority stakeholder, SoftBank Group
  • Division aims to develop AI chips for mass production
  • Encapsulates the growing importance of AI technology in chip design


The establishment of an AI chip division under Arm Holdings, supported by SoftBank, not only underscores a dedicated commitment to AI innovation but also has the potential to position the UK as a frontrunner in this domain. This development could catalyze heightened investments in AI research and development across industries, bolstering the global AI landscape. However, it may concurrently precipitate job displacement within traditional chip manufacturing. In the long term, this move could yield more sophisticated AI applications and enhanced product offerings, particularly in domains such as autonomous vehicles and smart home devices. Yet, potential obstacles such as regulatory complexities, escalating development costs, and competition from existing AI chip manufacturers remain key considerations.

Did You Know?

  • Artificial Intelligence (AI) chips: Tailored computer chips engineered for AI applications encompassing machine learning, natural language processing, and computer vision, optimized for handling high volumes of data in parallel with efficient power consumption.
  • Arm Holdings: A British semiconductor and software design company licensing its technology to industry giants like Apple, Samsung, and Qualcomm, with a business model based on intellectual property licensing to third-party manufacturers.
  • SoftBank Group: A Japanese multinational conglomerate with substantial investments across diverse sectors, including technology, media, and finance. Its acquisition of a majority stake in Arm Holdings in 2016 for $32 billion is one of the largest deals in the semiconductor industry, as it actively ventures into AI, robotics, and autonomous vehicles.

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