Cambridge-based chip shop ARM saw its share price shoot up yesterday on the back of rumours it may be snapped up by Apple.
ARM's microprocessor and micro-controller designs find their way into around 80 per cent of the world's mobile phones, including Apple's iPhone. The soon-to-arrive-in-the-UK iPad, however, uses a chip Apple owns itself after buying up PA Semi.
ARM's share price was initially boosted by Apple's results, which were record-breaking once again. Traders soon put two and three together to come up with six and the British firm flew up the FTSE 500.
"Apple is ARM's biggest customer and speculation is that the iPad maker wants to take chip design in house," the Evening Standard's city diary drooled.
Apple is certainly not resting up in its ambitions. It probably has five or six billion dollars kicking about somewhere. The acquisition of ARM would put it right up against Intel which is making a desperate lunge at the mobile and handheld space.