Apple Strikes Deal with Arm for Long-Term Access to Intellectual Property
Apple has reached an agreement with Arm that extends beyond 2040, allowing the tech giant continued access to Arm’s architecture, which is integral to its iPhone and Mac chips. Arm’s architecture is widely used in smartphone chips, including Apple’s A-series for iPhones. This deal ensures that Apple can rely on Arm’s technology for the foreseeable future.
Arm’s Importance and Nasdaq Debut
Arm, owned by SoftBank, is set to go public on the Nasdaq stock exchange soon, with a potential valuation of up to $52 billion. The fact that Apple has secured a long-term deal with Arm is reassuring for Arm’s other partners, as it indicates that they can continue using Arm’s technology without disruption.
Arm’s Architecture and its Role in the Industry
Arm’s architecture serves as the foundation for nearly every smartphone chip, including Apple’s. Switching to alternative instruction sets is costly and challenging, making Arm’s architecture a preferred choice. Arm’s licensing model, which allows companies to develop Arm chips without concerns about access restrictions, has made it a popular option for tech firms.
Concerns and Cornerstone Investors
Regulators previously blocked Nvidia’s attempt to acquire Arm due to concerns about access to Arm’s technology. However, companies like Apple, Google, Nvidia, Samsung, AMD, Intel, Cadence, Synopsis, and Taiwan Semiconductor Manufacturing Company have expressed interest in buying shares of Arm as part of its upcoming IPO, becoming “cornerstone investors.” These investors would have a stake in Arm’s ownership and influence over its management.
Both Arm and Apple declined to comment on the deal.