Apple Strikes Long-Term Deal with Arm Through 2040 and Beyond

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Apple has reached a long-term agreement with Arm, according to a recent SEC filing. This deal secures Apple’s access to the Arm architecture, which is a crucial component of its iPhone and Mac chips. The agreement extends beyond 2040, reaffirming the longstanding collaboration between Apple and Arm.

Arm, owned by SoftBank, is set to go public on the Nasdaq stock exchange and could be valued at up to $52 billion. The announcement of the Apple deal reassures Arm’s customers that the company’s technology will continue to be used by one of its most important partners.

Arm’s architecture is widely used in smartphone chips, including Apple’s A-series for iPhones. Switching to alternative instruction sets is costly and time-consuming, making Arm’s technology a preferred choice for many companies.

Arm’s architecture has been attractive to firms like Apple because it is not owned by a competitor. Arm has licensed its technology to various companies, allowing them to invest in developing Arm chips without concerns about losing access to the technology.

Despite concerns over access to Arm technology, regulators blocked Nvidia’s attempted acquisition of Arm. However, Apple, Google, Nvidia, Samsung, AMD, Intel, Cadence, Synopsis, and Taiwan Semiconductor Manufacturing Company have expressed interest in buying Arm shares as part of its upcoming IPO. These companies, referred to as “cornerstone investors,” would have a stake in Arm’s ownership and influence over its management.

Neither Arm nor Apple have provided further comments on the matter.

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