Arm Will Supply Apple Chip Designs through 2040 as Big Techs Eye $52-Billion IPO

Arm, the chips designer company, has struck a deal with Apple to supply its designs through 2040 and beyond.

Arm has filed an updated detail to US SEC for IPO on Tuesday and will debut on NASDAQ in coming weeks with $52 billion total valuation as the biggest tech IPO this year. Many big techs want to put some investment in Arm’s IPO including APPLE, GOOGLE, NVIDIA, SAMSUNG, AMD, INTEL, Cadence, Synopsis and TSMC.

Arm company founded in 1990, it began to grow sharply after iPhone and smart devices that required low-power usage chip designs came after 2007. The chips designed by ARM were shipped over 250 billion through 1990 to 2012 to Apple. Arm has a total Royalty revenue from its chip designs of around $1.5 billion in 2023, according to the SEC filing.

Apple’s A-series relied on Arm chips to the fundamentally level and switching away from Arm CPU architect will be very expensive and time consuming. Arm is also currently not own by Apple’s competitor but a Japanese investment holding, SoftBank. This might be the reason why Apple has been able to keep its product trade secret from others.