Apple Signs New Long-Term Deal with Arm For Chip Technology By CIOTechOutlook Team

Apple Signs New Long-Term Deal with Arm For Chip Technology

CIOTechOutlook Team | Wednesday, 06 September 2023, 06:20 IST

Apple has inked a new agreement with Arm for chip technology that "extends beyond 2040," according to Arm's first public offering paperwork. Arm disclosed pricing for what it expects would be a $52 billion initial public offering, the largest of its kind in the United States this year. SoftBank Group, which owns Arm, wants to offer 95.5 million American depository shares of the United Kingdom-based business for $47 to $51 per share, according to a filing by Arm.

Arm holds the intellectual property behind majority of the world's smartphone processing architecture, which it licenses to Apple and others. Apple used Arm technology in the construction of its own bespoke CPUs for iPhones, iPads, and Macs.

Apple was one of the early firms who joined to form the corporation in 1990, prior to the launching of their "Newton" portable computer in 1993, which employed an Arm-based processing chip. The Newton was a flop, but Arm went on to dominate mobile phone processors due to its low power consumption, which allows batteries to last longer.

Apple was one of several significant technological firms that contributed $735 million to Arm's first public offering. The reported transaction was not listed in Arm's prior IPO registration materials, which were made public on Aug. 21, meaning that it was signed between then and Sept. 5.