If rumors are to believed there are strong indications that Apple, makers of immensely popular one and iPad are on the verge of accquiring UK based ARM,the leading maker of mobile chips.

ARM’s microchips can be found in most of the world’s mobile phones, including Apple’s iPhone. Last year almost 4bn chips based on Arm’s designs were shipped worldwide which talks volumes about their market share and the growing demand for smartphones means that Arm is getting more and more of its designs into phones.

This move exactly may not be surprising as Apple had bought chip specialists PA Semi in 2008, and used its designs for its tablet PC iPad.

However,some analysts do believe that Apple may not buy ARM considering that Apple usually doesn’t make big ticket acquisitions. As with the accqusition of PA Semi,they go with the occasional small acquisition to integrate talent and specific technologies, its likely they will keep acquiring small chip startups to bring more key technology in-house.

[Editor’s take]

This rumour sprouted from yesterdays Evening Standard. The potential acquistion has jumped the stock up 3%. Noises from the trading floor is that this one could see ARM valued at £5.2bn, well above what it is trading for currently, 400p compared to the current 250p.

It wouldn’t be a totally suprising move, ARM are set to recieve royalties for the iPad for it’s components installed in the device. Actually since 1990 ARM has shipped over 15 billion chips selling to more than 200 companies. Apple probably feel it’s no longer right to keep them at ARMs length.