Apple signs long-term deal with IPO-bound chipmaker Arm
Apple has inked a new long-term agreement with Arm, extending beyond 2040, for the production of its own processors used in iPhones, iPads, and Macs. Arm confirmed the deal in its initial public offering (IPO) documents filed with the US Securities and Exchange Commission. The filing also revealed that Apple was among the 10 cornerstone investors who have shown interest in buying around $735 million of Arm shares. The SoftBank-backed chipmaker is aiming for an IPO of around $54.5 billion.
Arm's history with Apple
Arm was set up in 1990 as a joint venture between Acorn Computers, Apple, and VLSI Technology. Apple had joined hands with Arm for the release of its 'Newton' handheld computer in 1993. However, the device failed to take off. Arm later became one of the main players in mobile phone processors because of its low power consumption, which aids smartphone batteries to last longer. Apple has been utilizing Arm technology for its chipsets for many years.
Apple joins top investors in Arm's IPO
Apple is not the only one to show interest in purchasing roughly $735 million worth of Arm shares. Other companies include NVIDIA Corporation, Intel Corporation, Advanced Micro Devices Inc., Alphabet-owned Google, MediaTek, TSMC Partners Ltd, Synopsys, and Cadence Design Systems. To note, Arm is offering 95.5 million American depository shares at a valuation of $47 to $51 each.
