Energy: Apple may invest in Arm if it goes public later this year, here’s why

Chip design company Arm is expected to get listed on the US Nasdaq stock exchange later this year. According to a report by Nikkei, the company is likely to go public with an IPO valued at more than $60 billion. The report notes that several major chipmakers including Apple, Samsung, Nvidia, Intel and others are expected to invest in Arm stock as it goes public. The company’s chip architecture forms the foundations of all Apple Siliconchips as well.So, Arm stock ownership forApple will help the iPhone maker secure a stable future for its chips.

How this investment will help the companies
As per the report, the chipmakers will buy a few per cent stake each when the company stock is floated. These companies will be seen as long-term shareholders that will stabilise the Arm stock price. Additionally, these investments will also give the companies some advantage over Arm’s management.

How Arm is important for Apple
Arm’s chip architecture did beat Intel’s x86 architecture on mobile performance and power efficiency and has also helped Apple to become the mobile devices giant. It is important to note that all Apple Silicon chips are based on the Arm architecture.

Earlier, chips like the A4 and A5 that were used in iPhones and iPads were rebranded versions of Arm reference designs. As Apple started recruiting its silicon engineering groups, the company’s chips began to diverge from Arm reference designs.

In 2020, this culminated in the M1 design that allowed Apple to fully separate itself from Intel across its entire range of products. However, the base CPU instruction architecture remains the same.
Chipmakers have already tried to buy Arm
Earlier, in February 2022, US-based chip maker Nvidia tried to buy Arm outright for $44 billion. However, the deal was blocked from going ahead by anti-trust regulators. Moreover, the chip designer’s value when it goes public later in 2023 is also expected to exceed $60 billion.