ARM Aims to Challenge AI Customers by 2025, Report Reveals

SoftBank Group, the owner of ARM, is considering a bold move that could potentially disrupt the semiconductor industry. The plan involves ARM, a major player in the chip design sector, entering the AI chip market, a decision that might lead to conflicts with its existing customers. This strategic shift is reportedly driven by SoftBank Group's CEO, Masayoshi Son, who is known for his ambitious vision for the company.

According to reports from Nikkei, mass production of the new AI chip is scheduled to commence in the fall of 2025. ARM, renowned for licensing its instruction set architecture and cores to leading chip vendors worldwide, including Nvidia, aims to establish a strong presence in the AI chip segment. The move signifies a significant departure from ARM's traditional business model and could potentially reshape the competitive landscape in the semiconductor industry.

As part of the plan, once the AI chip business is operational, there are intentions to separate it from ARM and bring it under the direct control of SoftBank. However, concerns remain about the impact on ARM's core licensing business during this transition period. The prospect of ARM directly competing with its customers has raised eyebrows, especially in light of past regulatory scrutiny.

During Nvidia's failed attempt to acquire ARM, the issue of potential competition between ARM and its customers was a key point of contention. Regulatory authorities, citing antitrust concerns, blocked the acquisition, highlighting the sensitivity of the situation. ARM's historical commitment to avoiding direct competition with its clients, akin to TSMC's approach in the foundry business, could face a significant test if the AI chip venture materializes.

SoftBank's overarching strategy aligns with Masayoshi Son's vision to position the company as a dominant force in the AI domain. With a substantial investment of 10 trillion yen earmarked for this purpose, SoftBank is actively pursuing partnerships with key players in the semiconductor industry. Negotiations with foundry suppliers like TSMC indicate the company's determination to secure cutting-edge chip manufacturing capabilities for its AI processor.