Filing reveals Apple’s new long-term partnership with Arm for chip technology

Filing reveals Apple’s new long-term partnership with Arm for chip technology

Sept⁣ 5 (Reuters) – Apple (AAPL.O) has signed a new deal with Arm for chip technology that “extends beyond 2040,” according to Arm’s initial public offering documents filed on Tuesday.

Arm unveiled pricing​ on Tuesday‍ for what‍ it​ hopes will​ be a $52 billion ‍initial ⁤public offering, which would be the largest⁢ such deal ‌in the U.S. this year. Arm owner SoftBank Group (9984.T) plans to ⁢offer ​95.5 million American depository shares⁣ of the United Kingdom-based company for⁣ $47 to $51⁣ apiece, ⁤Arm ⁢said⁢ in a filing.

Arm owns the intellectual property behind the computing architecture for most of the world’s smartphones, which it licenses ⁣to Apple and​ many others. Apple ​uses Arm’s technology in the processes of designing its own custom chips for its iPhones, iPads and Macs.

The two ⁤companies have a long history ‍- Apple was ‌one⁣ of ⁤the initial ⁢companies that partnered to found ‌the firm ‌in⁣ 1990, before the release of its “Newton” handheld computer in 1993, which used an Arm-based processor chip. The Newton flopped,​ but ⁢Arm went on ⁢to become dominant in mobile phone chips because of its low power consumption, ​which‌ helps batteries last longer.

Apple was among a number of⁣ large ‍technology companies that that on Tuesday invested $735 ⁣million in Arm’s initial public offering. ‌Reuters⁢ last week‍ was the first ‍to confirm that Apple ‍was ​among the ⁤strategic investors who agreed to buy⁣ shares.

The deal disclosed on Tuesday ‍was not mentioned in⁢ Arm’s previous IPO filing documents made public on Aug. 21,​ implying that‌ the deal was signed between then and Sept. 5.

Arm declined to comment‌ beyond its filings, and Apple ‍did not ​immediately return a request for comment.

Reporting by Stephen Nellis in San Francisco; ⁤Editing by Sandra Maler

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