Arm Cancels Qualcomm’s Chip Design Licence
According to a Bloomberg News report, Arm Holdings, a leading semiconductor technology company, has announced it will terminate a licensing agreement with Qualcomm, a major chipmaker, amid an ongoing legal dispute.
Arm cancelled its agreement allowing Qualcomm to use its intellectual property for chip design. This decision comes after a 2022 lawsuit Arm filed against Qualcomm. In the lawsuit, the semiconductor company claims Qualcomm failed to negotiate a new license following its acquisition of Nuvia. Arm had also terminated the license for chips used in Microsoft’s Copilot+ laptops, citing their direct technical descent from Nuvia’s technology.
The timing of Arm’s announcement, just as the Snapdragon Summit is underway in Hawaii, adds a layer of drama and uncertainty to the event. Qualcomm has strongly denied Arm’s claims, calling the termination “baseless” and a “desperate ploy” to disrupt the legal process. The company expressed confidence that its rights under the agreement will be upheld. Additionally, Qualcomm accused the semiconductor company of engaging in “anticompetitive conduct.”
The legal battle between the two tech giants is scheduled to begin in December in a federal court in Delaware. An Arm victory could have significant implications for Qualcomm and its partners, potentially forcing them to halt shipments of the new laptops. It could also undermine one of Qualcomm’s largest strategic acquisitions in recent years.
Some investors and analysts believe a settlement between Arm and Qualcomm is likely. This is despite the ongoing public feud. Many expect a resolution before the trial. The two companies are interdependent, and a prolonged legal battle could have negative consequences for both.
