Apple has entered into a new chip technology deal with Arm which will extend beyond 2040. Apple has been using Arm technology for the production of its own chipsets which are used in iPhones, iPads and Macs.
In the initial public offering (IPO) documents filed with the US Securities and Exchange Commission, Arm informed, “We have entered into a new long-term agreement with Apple that extends beyond 2040, continuing our longstanding relationship of collaboration with Apple and Apple’s access to the Arm architecture.”
Apple was also among one of the ten cornerstone investors who have expressed interest in buying around $735 million of Arm shares. Other companies include Nvidia Corp., Advanced Micro Devices Inc., Alphabet Inc.’s Google, Intel Corp., MediaTek Inc, TSMC Partners Ltd., Synopsys Inc. and Cadence Design Systems Inc
In the filing with the US SEC, Arm also confirmed that it is offering 95.5 million American depository shares for $ 47 to $51 each. According to Bloomberg News calculations, the deal will value Arm at $54.5 billion.
Arm was founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology. The company was listed on the London Stock Exchange and Nasdaq from 1998 to 2016, until being taken private after Softbank acquired it in a $32 billion deal.
Apple had partnered with Arm for the release of its ‘Newton’ handheld computer in 1993 but the device failed to take off, Reuters reported. Arm later went on to become one of the dominant players in the mobile phone chips because of the low power consumption which helps the smartphone batteries to last longer.
(With inputs from Reuters, Bloomberg)
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Updated: 06 Sep 2023, 07:54 AM IST
