In a move that underscores Apple’s commitment to innovation and long-term partnerships, the tech giant has entered into an agreement with Arm to supply chips “beyond 2040,” as revealed in Arm’s recent initial public offering (IPO) documents filed on Tuesday.
Arm, the British semiconductor and software design company, disclosed pricing details for its upcoming IPO, aiming for a monumental $52 billion deal, set to be the largest of its kind in the U.S. for the year. SoftBank Group, Arm’s owner, intends to offer 95.5 million American depositary shares of the company, priced between $47 and $51 each, according to the documents.
Arm’s significance in the tech industry lies in its ownership of intellectual property that forms the foundation of the computing architecture used in most smartphones. The company licenses this technology to various tech giants, including Apple, which leverages Arm’s innovations as it designs its own chips for products such as the iPhone, iPad, and Mac.
The relationship between Apple and Arm dates back decades. Apple was among the pioneering companies founded in 1990. In 1993, it introduced the Newton pocket computer, notable for employing an Arm-based processor chip. Although the Newton ultimately faced challenges in the market, Arm’s energy-efficient chip design went on to dominate the cell phone industry, significantly extending battery life in mobile devices.
This latest development in the partnership between Apple and Arm comes as a part of Arm’s IPO, which saw significant investments from major tech players, including Apple. While the details of this renewed chip supply agreement were not mentioned in Arm’s previous IPO documents published on August 21, it is evident that negotiations and agreement finalization occurred between that date and September 5.
Arm has chosen to remain tight-lipped about the specifics of the agreement, and Apple has not issued an immediate comment regarding the matter.
This extension of their partnership beyond 2040 reflects the enduring relationship between two giants in the tech industry. It also signifies Apple’s commitment to securing cutting-edge chip technology for its future products, ensuring that it continues to lead in innovation and performance for years to come.