Apple’s Investment in ARM: A Strategic Move
American tech giant Apple is rumored to be among the notable investors who will be investing in British chip design firm ARM. ARM, which is expected to go public on the U.S. Nasdaq stock exchange later this year, has been valued at over $60 billion, making it an attractive investment opportunity for several tech giants.
With its custom silicon division in mind, investing in ARM has a significantly broader interest for Apple. Currently, the majority of ARM’s shares (75 percent) belong to SoftBank, with the remaining 25 percent owned by the SoftBank Vision Fund. The Vision Fund is reportedly planning to sell 10-15 percent of its shares on the open market, making room for companies like Apple to pursue their investments. Although the exact percentage of Apple’s ownership was not discussed in the report, its significance in the investment pool is considerable.
Without ARM, Apple would have little choice but to continue relying on Intel for its chipsets. The development of improved chipsets, such as the M-series, which offer excellent performance-per-watt metrics, would be compromised. ARM welcomes large chipmakers as long-term shareholders to stabilize the stock price at the time of the public listing.
By investing in ARM, Apple secures a stable future for the development of its chipsets, including the M3 Ultra and future parts like the M4. These chipsets will be mass-produced on improved chip architectures from TSMC. It is evident that Apple’s partnership with ARM is strategic and critical for the advancement of its custom silicon division.
Earlier, there were reports that tech giants Samsung, Intel, and NVIDIA also expressing interest in investing in ARM. However, the total ownership of these companies has not been disclosed.
The attempted acquisition of ARM by NVIDIA for $40 billion was unsuccessful due to regulatory concerns. As a result, SoftBank is now taking the company public, valuing it at $60 billion.
The market eagerly awaits ARM’s initial public offering on the Nasdaq stock exchange later this year. With Apple’s investment in the company, there is a strong indication that the benefits will go beyond financial gains, leading to groundbreaking advancements in the world of custom chipsets.
