Apple (NASDAQ:AAPL) and Arm, the Softbank-owned company that developed the ARM architecture, have signed a long-term agreement for sharing chip technologies, extending their partnership beyond 2040. The news was confirmed through public documents filed on Tuesday this week.
This development follows Apple's decision to invest in Arm stock after the company announced its plans to go public on the Nasdaq stock market. The agreement was not mentioned in the IPO filing documents made public on August 21, indicating that this new deal was signed between then and Monday.
While neither company has disclosed the specifics of the agreement, it is likely that Apple aims to ensure continued access to the ARM architecture. The ARM-based chips are integral to Apple's product line, powering devices from the Apple Watch to the iPhone and iPad. In 2020, Apple announced a significant transition for its Mac lineup, which now also features the same Apple Silicon chips instead of Intel (NASDAQ:INTC) processors.
The partnership between Apple and Arm dates back decades before the advent of the iPhone. As early as 1993, Apple had incorporated ARM chips in its Newton handheld computer. The ARM technology has enabled Apple to create devices with high performance and remarkable energy efficiency.
In addition to Apple, other customers of Arm, including Nvidia (NASDAQ:NVDA), Google (NASDAQ:GOOGL), and Samsung (KS:005930), agreed last week to invest $735 million in the company's initial public offering.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.