Key Points
- Arm has canceled its architectural licensing agreement with Qualcomm, effective after a 60-day notice period.
- The two companies are embroiled in a legal battle, with the case set to trial in December in federal court in Delaware.
- Qualcomm’s 2021 acquisition of Nuvia, a chip startup founded by former Apple engineers, is central to the lawsuit.
- Arm sued Qualcomm in 2022, alleging that Qualcomm failed to renegotiate a new license following the Nuvia purchase.
Arm Holdings Plc (O9Ty.F) has reportedly canceled a crucial architectural licensing agreement with Qualcomm Inc (QCOM.O), signaling a major shift in their long-standing partnership. This license allowed Qualcomm to use Arm’s intellectual property to design its chips, a core component of Qualcomm’s business. According to reports, Arm has given Qualcomm a mandated 60-day notice of the cancellation, citing terms in the contract that permit Qualcomm to create its chips based on Arm’s standards.
While Arm has declined to comment on the matter, Qualcomm has yet to respond to inquiries outside regular business hours. This development adds another layer to the ongoing legal dispute between the two companies, which will be heard in Delaware’s federal court this December.
The lawsuit stems from Qualcomm’s 2021 acquisition of Nuvia, a startup founded by former Apple engineers. Nuvia’s technology is at the heart of the dispute, as Qualcomm reportedly did not renegotiate a new licensing agreement with Arm after acquiring the company. Arm sued Qualcomm in 2022, arguing that it violated the terms of its previous agreements.
Arm, majority-owned by Japan’s SoftBank Group, plays a pivotal role in the global semiconductor industry, licensing its chip architecture to major tech companies. The outcome of this legal battle could have significant implications for both companies and the broader chip design market, as Qualcomm relies heavily on Arm’s architecture for its mobile processors.
