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


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Apple Strikes Long-Term Deal with Arm to Secure Access to Core Technology

Apple has reached an agreement with Arm that extends beyond 2040, ensuring the company’s access to Arm’s architecture for its iPhone and Mac chips. This deal secures a crucial piece of intellectual property for Apple, allowing it to continue using Arm’s technology for the foreseeable future.

Arm, owned by SoftBank, is set to go public on the Nasdaq stock exchange with a valuation of up to $52 billion. The announcement of the Apple deal reassures Arm’s investors that the company’s important partners will continue to rely on its technology.

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

Founded in 1990, Arm experienced significant growth after the release of the iPhone in 2007, as smartphone manufacturers sought low-power consumption chips. Arm’s open licensing model allowed companies to invest in developing Arm chips without concerns about restricted access to the technology.

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Cornerstone Investors Show Interest in Arm’s IPO

Arm’s architecture has been attractive to companies like Apple because it was not owned by a competitor. Over 230 billion chips have been shipped using Arm’s architecture, although a significant portion of the company’s royalties revenue comes from products released before 2012.

Regulators blocked Nvidia’s attempted acquisition of Arm due to concerns about access to Arm technology. As Arm prepares for its IPO, companies including Apple, Google, Nvidia, Samsung, AMD, Intel, Cadence, Synopsis, and Taiwan Semiconductor Manufacturing Company have expressed interest in purchasing Arm shares. These companies, known as “cornerstone investors,” would have a stake in Arm’s ownership and influence over its management.

No official comments have been provided by Arm or Apple representatives regarding the deal.

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