Apple Inks Long-Term Chip Deal with ARM Through 2040 and Beyond

Tech giant Apple has signed a new agreement with semiconductor design firm ARM that will see the iPhone maker use ARM's chip architectures well beyond 2040. The extended partnership was revealed in ARM's plans for an initial public offering (IPO).

ARM noted that the fresh long-term deal with Apple will carry on the two companies' "longstanding relationship of collaboration" and ensure Apple's continued access to ARM designs. Apple relies heavily on ARM chip technology across its product lineup, including iPhones, iPads, Macs and more.

The new contract comes even as ARM is preparing for a public listing. Google, Apple, Intel, Nvidia, Samsung and TSMC have all shown interest in acquiring up to $735 million worth of shares in ARM's IPO. The move follows the collapsed acquisition of ARM by Nvidia amidst regulatory troubles.

ARM's energy-efficient chip designs have become dominant in the electronics industry as traditional x86 architectures from Intel languish. ARM's growing importance is clear from Apple's commitment extending beyond 2040. However, ARM is also in legal battles with customers like Qualcomm over licensing terms.