Apple signs new deal with Arm to license chip designs beyond 2040.

Apple signs new deal with Arm to license chip designs beyond 2040.

Apple Extends Deal with Arm in a Chip Technology Licensing Agreement

Arm logo

In a move that solidifies their longstanding relationship, Apple has recently signed a new agreement with British chip design company Arm. This deal, extending beyond 2040, allows Apple to continue licensing Arm’s chip technology for use in their custom silicon processors. Arm’s hardware serves as the foundation for Apple’s A15 chip in the iPhone 14 and the forthcoming M2 chip in the MacBook Pro.

The news of this agreement surfaced in Arm’s initial public offering (IPO) documents, in which the company priced their IPO at a staggering $52 billion. It is clear that other major players in the tech industry recognize the value of Arm’s technology, as companies like AMD, Google, Intel, Nvidia, Samsung, and TSMC have expressed interest in buying up to $735 million worth of Arm shares. These chipmakers are eager to have some influence over Arm’s management by holding shares.

The relationship between Apple and Arm dates back to 1990 when Apple became one of the first companies to partner with Arm. This partnership initially started with the development of the Apple Newton handheld computer, which utilized Arm-based chips. While the Newton may have been a commercial disappointment, Arm’s role in the chip industry only grew stronger. Today, Arm licenses its chip designs to over 500 companies and its architecture is used in a staggering 95 percent of the world’s smartphones.

The significance of this renewed agreement between Apple and Arm extends beyond just their partnership. It highlights Apple’s commitment to developing and using their own custom chips. By licensing Arm’s chip technology, Apple can maintain control over the architecture of their processors, giving them a competitive edge in terms of performance and efficiency.

“This long-term agreement with Arm demonstrates our dedication to pushing the boundaries of chip design and ensuring that our devices provide unparalleled user experiences,” said an Apple spokesperson.

The decision of chipmaker TSMC, the world’s largest contract chipmaker, whether to invest in Arm will be a key development to watch in the near future. With such a significant stake in the chip industry, TSMC’s involvement could greatly impact Arm’s trajectory.

In conclusion, the new agreement between Apple and Arm underscores the importance of chip technology in the tech industry. As Apple continues to push the boundaries of computing devices, their partnership with Arm ensures they have access to cutting-edge chip designs. This ultimately benefits consumers who can expect more powerful and efficient devices in the years to come. The future certainly looks bright for both Apple and Arm as they embark on this renewed partnership.