Apple has a deal with chip design company Arm that will last until 2040. Disclosures regarding the deal are included in new documents that Arm submitted as part of its planned IPO. With Apple’s new Arm license agreement, the architect of iPhone and Mac chip technology in the coming years has been determined.
The chip architect of new Apple products will be Arm again!
Arm is the name behind the computing architecture for most smartphones in the world. The company provides licenses to many technology giants, including Apple. Apple uses Arm’s technology to design its own custom chips for its iPhone, iPad and Macs.
The explanations about the agreement do not contain much detail. “Continuing our longstanding collaborative relationship with Apple and Apple’s access to the Arm architecture, we have signed a new long-term agreement with Apple that extends beyond 2040,” Arm said in the document.
The Apple Arm partnership is actually not surprising. The two companies have a long history. Apple’s Newton handheld computer using an Arm-based processor chip was released in 1993. Newton failed. But Arm continued its success in cell phone chips. Low power consumption, which helps batteries last longer, brought success to Arm.
In 2016, the Japanese company, famous for its large technology investments, acquired Softbank Arm. Nvidia, one of the world’s largest chip manufacturers, wanted to buy Arm in 2020. However, the whole world reacted to the desire of chip maker Nvidia to buy its rival. Arm made a lot of noise with the crisis he had with Nvidia. Softbank, on the other hand, announced that it will open Arm to the public by turning the chip crisis into an opportunity. This IPO will be the largest technology IPO of 2023.
Apple isn’t the only one interested in Arm. Many technology giants are after this chip company. These companies, which we are all familiar with, drew attention in Arm’s public offering documents. Among the companies that are interested in Arm’s shares are some big technology companies such as AMD, Google, Intel, Nvidia, Samsung and TSMC. It looks like Nvidia will be quite insistent on pursuing its rival.
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