In a significant development for the tech world, Apple has inked a new long-term agreement with Arm, as revealed in Arm’s initial public offering documents filed recently. This deal extends far into the future, promising to supply chips to Apple “beyond 2040.” While the specifics of the agreement are yet to be disclosed, this collaboration signifies Apple’s continued pursuit of innovation and its commitment to stay at the forefront of the technology industry.
Arm, a major player in the world of computing architecture, owns the intellectual property that underlies the design of most smartphone chips. It licenses this technology to Apple and numerous other companies. For Apple, this partnership is of paramount importance as it allows the tech giant to leverage Arm’s cutting-edge technology in the development of its own chips for the iPhone, iPad, and Mac.
The history between Apple and Arm runs deep. Apple’s association with Arm dates back to 1990 when it was one of the early adopters of Arm’s technology. In 1993, Apple introduced the Newton pocket computer, which notably used an Arm-based processor chip. While the Newton did not achieve commercial success, it marked the beginning of Arm’s dominance in the realm of mobile phone chips. Arm’s architecture, known for its energy efficiency, significantly extended the battery life of mobile devices.
Interestingly, this development coincides with Arm’s initial public offering (IPO) plans, which aim to raise a staggering $52 billion. If successful, it will be the largest IPO of its kind in the United States this year. The IPO will see Arm’s owner, SoftBank Group, offering 95.5 million American depositary shares of the British semiconductor and software design company at prices ranging from $47 to $51 per share.
What makes this IPO even more noteworthy is the involvement of strategic investors, with Apple being a prominent name among them. Last week, Reuters was the first to confirm Apple’s participation in the strategic investment of $735 million in Arm’s IPO. This further cements Apple’s commitment to Arm’s technology and its vision for the future.
Crucially, this latest deal was not mentioned in the previous Arm IPO documents, which were made public on August 21. This indicates that the agreement between Apple and Arm was forged in the short span between that date and September 5.
Both Arm and Apple have chosen to remain tight-lipped about the specifics of the deal, with Arm declining to comment beyond its official documents, and Apple yet to respond to requests for further information. However, the significance of this collaboration, with a horizon stretching beyond 2040, underscores the enduring partnership between these tech giants and their collective ambition to push the boundaries of what’s possible in the tech world.
