SoftBank has officially halted its partnership with Intel for AI chip development due to Intel's inability to meet the volume and speed requirements set by SoftBank.
Intel Partnership Failure
According to the Financial Times, Intel lost the contract with SoftBank due to its inability to meet the required production volumes and speeds. This failure raises questions about the challenges Intel faces as it deals with its own financial issues.
Switch to TSMC Collaboration
Following the unsuccessful collaboration with Intel, SoftBank has turned to Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker. The partnership with TSMC aims to strengthen SoftBank's position in the AI chip market, currently led by NVIDIA.
SoftBank’s Future Plans
Project Izanagi, aimed at developing AI processors capable of competing with Nvidia's GPUs, initially sought Intel's manufacturing capacity. SoftBank plans to establish AI data centers using its own chips by 2026 in the US, Europe, Asia, and the Middle East. Recently, Arm, owned by SoftBank, announced it will release AI chips next year.
Thus, SoftBank continues to seek solutions to advance its ambitious AI plans, switching to collaboration with TSMC and preparing for the release of new AI chips through its subsidiary Arm.
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