6-9-2023 (CALIFRONIA) Apple has inked a significant deal with chip technology firm Arm, extending their partnership well into the next two decades. According to documents filed for Arm’s initial public offering (IPO), the agreement goes beyond 2040.
Arm, which recently revealed pricing details for its anticipated $52 billion IPO, plans to offer 95.5 million American depository shares for $47 to $51 each. This IPO is poised to be the largest in the U.S. this year. Arm holds the intellectual property rights for the computing architecture used in a majority of the world’s smartphones, licensing its technology to Apple and various other companies. Apple utilizes Arm’s technology to design its custom chips for iPhones, iPads, and Macs.
The relationship between Apple and Arm dates back to Arm’s establishment in 1990 when Apple was among the founding partners. In 1993, Apple released its “Newton” handheld computer, featuring an Arm-based processor chip. Although the Newton didn’t succeed in the market, Arm’s low-power consumption technology became a cornerstone of mobile phone chips, significantly prolonging battery life.
Apple, alongside other major tech companies, recently invested $735 million in Arm’s IPO. Reuters had previously confirmed Apple’s participation as a strategic investor in the IPO, but the details of this specific agreement were not included in Arm’s initial IPO filing from August 21, suggesting that it was finalized between that date and September 5.
Both Arm and Apple have declined to comment further on the specifics of the deal, but this extended partnership is expected to have significant implications for the future of chip technology and its integration into Apple’s devices.
