The UK-based company will set up an AI chip division and aims to build a prototype by spring 2025, according to the report, which went on to say that mass production will be handled by contract manufacturers and is expected to start in the autumn of next year.
The report said that Arm will pay for initial development costs, which may total hundreds of billions of yen, with SoftBank also contributing.
Once a mass-production system is set up, the AI chip business could then be spun off and placed under SoftBank. According to the report SoftBank is already negotiating with Taiwan Semiconductor Manufacturing Corp (TSMC), among others, over manufacturing, looking to secure production capacity.
Arm, which licenses its chip designs and earns funds through royalties, has been expanding into the data-centre market, where operators are looking to build their own chips to power new AI models and reduce their reliance on dominant supplier Nvidia.
