Apple Inc (NASDAQ:AAPL) inked a fresh deal with British chip designer Arm Ltd for chip technology that extends beyond 2040.

The companies signed the deal between August 21 - September 5, Reuters cites from the filings.

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Arm owns the intellectual property behind the computing architecture for most of the world's smartphones, which it licenses to Apple and many others. 

Apple uses Arm's technology to design custom chips for iPhones, iPads, and Macs.

Apple was one of the initial companies that partnered to found Arm in 1990, before the release of its "Newton" handheld computer in 1993, which used an Arm-based processor chip. The Newton flopped, but Arm became dominant in mobile phone chips because of its low power consumption, which helps batteries last longer.

Apple was among the anchor investors that invested $735 million in Arm's IPO. 

TSMC is investing $40 billion in building a chip plant in Arizona. In July, TSMC said production will likely begin in 2024 at its first chip fabrication facility, or fab, in Arizona would be delayed until 2025 due to a crisis of specialist workers.

Price Action: AAPL shares traded lower by 0.69% at $188.40 on the last check Monday.