Apple Inks Chip Tech Deal With Arm

Apple has signed a new deal with Arm for chip technology that "extends beyond 2040," according to Arm's initial public offering documents filed recently, Stephen Nellis reported for Reuters.

Apple utilizes Arm's technology in the process of designing its custom chips for iPhones, iPads, and Macs.

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 US this year.

Arm owner SoftBank Group plans to offer 95.5 million American depository shares of the United Kingdom-based company for $47 to $51 apiece, as stated in Arm's 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 utilizes Arm's technology in the process of designing its custom chips for 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 due to its low power consumption, extending battery life.

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