Yokohama-based Socionext Inc. announced plans for the development of advanced 2-nanometer chips on Wednesday, resulting in a record-breaking intraday stock surge. These chips, targeted at data centers, 5G wireless infrastructure, and network-edge applications, are being developed in collaboration with Arm Holdings (NASDAQ:ARM) Plc and Taiwan Semiconductor Manufacturing Co. (TSMC).
The company expects to have the first samples of its 32-core chip, which will utilize TSMC's forthcoming fabrication technology, by the first half of 2025. This initiative is anticipated to significantly enhance Socionext's global profile, according to Daiwa Securities.
Socionext, a specialist in custom system-on-chips for various sectors, saw its shares triple following its Tokyo IPO a year ago, during which it experienced a 15% boost. The company's main competitors include Faraday Technology Corp., Alchip Technologies Ltd., and Global Unichip Corp. At peak values, major stakeholders such as Panasonic (OTC:PCRFY) Holdings Corp. and the Development Bank of Japan divested their shares.
The chips that Socionext is developing will be in direct competition with mass-market examples like Apple Inc (NASDAQ:AAPL).’s Silicon processors and Qualcomm (NASDAQ:QCOM) Inc.’s Snapdragon line.
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