Apple Signs Long-Term Agreement With Arm For Chip Technology

Tech giant Apple has reportedly entered into a long-term agreement with SoftBank’s Arm Holdings, which will be extended beyond the year 2040. Apple has been using Arm’s technology for the production of iphone, Macs and iPad.

“We have entered into a new long-term agreement with Apple that extends beyond 2040, continuing our longstanding relationship of collaboration with Apple and Apple’s access to the Arm architecture,” Arm said in its exchange filing for IPO.

Also read: Vedanta In Talks With Standard Chartered for $1.3 Billion Loan: Report

According to reports, Apple is among one of the top ten cornerstone investors, who have expressed an interest in buying around $735 million of Arm shares. Nvidia Corp., Advanced Micro Devices Inc., Alphabet Inc.’s Google, Intel Corp., MediaTek Inc, TSMC Partners Ltd, Synopsys Inc. and Cadence Design Systems Inc are other investors.

Arm also said in its exchange filing that it is offering 95.5 million American depositary shares for $ 47 to $51 each. The IPO deal will value at $54.5 billion, as per Bloomberg.

Arm was established in 1990 through a collaborative effort involving Acorn Computers, Apple, and VLSI Technology. It remained a publicly listed company on both the London Stock Exchange and Nasdaq from 1998 to 2016. However, following its acquisition by Softbank in a monumental $32 billion transaction, Arm transitioned to a private entity.

Also read: SoftBank’s Arm Launches IPO To Court T Rowe To Consider Valuation Of $52 Billion

Arm has lately become one of the dominant players in the mobile phone chips because of the low power consumption which helps the smartphone batteries to last longer.