ARM Holdings is a takeover target for smartphone manufacturer Apple, it has been reported.
ARM is based in the city of Cambridge here in the UK and its microprocessors and chip technologies are present in virtually every mobile phone that is sold globally.
Apple would have to find £3 billion in order to make a reasonable takeover bid, which would end with it owning the firm that supplies chips for its own iPhone.
Share prices in ARM have stayed steady, although the breaking of the rumours yesterday did see them increase slightly.
ARM employs 1700 people and operates internationally, with 2009 seeing a total of more than 4 billion chips based on ARM patents appearing in gadgets around the globe.
The growth of the smartphone market is allowing ARM to become even more significant in the mobile industry and most smartphones now use two or more of ARM's chips apiece.
ARM takes its name from the Acorn Rise Machine, a computer project developed between Acorn and Californian firm VLSI back in the early 1980s.
When ARM eventually became a separate entity in 1990, it was Apple who invested as one of three original founders.
Apple is already the proud owner of one chip producer called PA Semi, although it would make sense for it to also pick up a controlling stake in ARM as the smartphone market shows no sign of slowing its ascent.
So far no official confirmation or denial of the rumours about an ARM takeover bid has emerged from Apple.