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Apple has entered into a new chip technology deal with Arm which will extend beyond 2040. Apple is using Arm technology for the production of its own chipsets for iPhones, iPads and Macs.
It was among one of the ten cornerstone investors who have expressed interest in buying around $735 million of Arm shares. Other companies include Nvidia Corp., Advanced Micro Devices Inc., Alphabet Inc.’s Google, Intel Corp., MediaTek Inc., TSMC Partners Ltd., Synopsys Inc. and Cadence Design Systems Inc.
Apple Extends Deal With Chip Designer Arm Through 2040
In the initial public offering (IPO) documents filed with the US Securities and Exchange Commission, Arm informed, “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 also confirmed that it is offering 95.5 million American depository shares for $ 47 to $51 each. According to the reports, the deal will value Arm at $54.5 billion.
Arm was founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology. The company was listed on the London Stock Exchange and Nasdaq from 1998 to 2016. Later, Softbank acquired it in a $32 billion deal.
Apple had partnered with Arm for the release of its ‘Newton’ handheld computer in 1993. However, the device failed to take off. Now Arm becomes one of the dominant players in the mobile phone chips because of the low power consumption which helps the smartphone batteries to last longer.
See Also: Apple is Inches Closer to Launch a 14-Inch iPad This Year
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