Apple Sets up Major Deal With Arm for Chip Tech
ARM-based chips are commonly found in Apple devices, including Macs, Apple Watches, iPhones, and iPads.
- Apple has signed a long-term deal that will go beyond 2040 with Arm for sharing chip technology.
- Arm holds the IP for computing architecture for most smartphone companies worldwide, driving the deal’s importance.
Apple and Softbank-owned Arm have entered a long-term partnership to share chip technologies. This follows an agreement by Apple to invest in Arm stocks after the company filed its IPO. The new deal will go beyond 2040 and likely provide Apple access to ARM architecture for many years.
ARM technology has been essential for developing high-performance and energy-efficient Apple devices since 1993. ARM-based chips are a part of almost all Apple devices, including iPhones, iPads, Macs, and Apple Watches. Apple has now started to move away from Intel to use more ARM-based technologies for the latest Mac computers.
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Global Tech Leaders Invest in Arm
Arm has become a powerhouse responsible for the computing architecture used by smartphone manufacturers worldwide. Apple itself invested $735 million in the company’s initial public offering. Other major investors include tech giants such as AMD, NVIDIA, Alphabet, and Intel, all of whom have reportedly invested between $25 million and $100 million.
Considering the importance of Arm in the business of all these companies, such investments make it harder for future acquisitions of Arm while improving commercial relationships with the company. This will make it likely that Arm will not pick a side when it comes to the chip business for the foreseeable future.
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