Report: Apple Considering ARM Purchase for $8 Billion

According to a report by the London Evening Standard, Apple is considering the purchase of the Cambridge UK based Advanced RISC Machines Ltd. for $8 billion. Such a move is not outside of the realm of possibility for the company as it formed the chip manufacturer in 1990 as a joint venture with Acorn Computers and VLSI Technologies.

ARM currently supplies chips for a majority of mobile phone manufacturers and is experiencing a resurgence thanks to its Cortex system on a chip along with providing chips for router manufacturers and video game console manufacturers Sony and Nintendo respectively, but neither of the aforementioned come close to the volume acheived by Apple as ARM also provides chips for the iPhone, iPod and recently released iPad.

Understandably, other manufacturers are concerned with the report, as the potential for a purchase would place ARM chip supplies in doubt since Apple may decide to eliminate chip sales to third-parties, leaving electronics manufacturers and designers scrambling for alternatives.