In a shocking move, Arm has cancelled the architecture license allowing Qualcomm to utilize its intellectual property and standards for chip design, escalating their long-standing feud. This decision comes two years after Arm initially filed a lawsuit against its former close partner. According to Bloomberg, the cancellation of the license will significantly impact Qualcomm’s operations and finances.
Qualcomm, like many other chipmakers, heavily relies on Arm’s computer code to enable chips to run software, including operating systems. Arm has reportedly given Qualcomm a 60-day notice of cancellation, warning that failure to reach an agreement within this timeframe could have far-reaching consequences for both companies.
The dispute between Arm and Qualcomm began in 2022, when Qualcomm acquired Nuvia, one of Arm’s licensees. Arm subsequently sued Qualcomm, alleging that the US company failed to obtain the necessary permits to transfer Nuvia’s licenses. As a result, Arm claimed that Nuvia had breached its contract, leading Arm to terminate the licenses.
Qualcomm has been utilizing Nuvia-developed technology in its chips, which are designed for AI PCs, used by companies such as Microsoft and HP. Arm, however, wants Qualcomm to cease using this technology and destroy any Arm-based technology developed prior to the acquisition.
If the issue is not resolved within the next 60 days, Qualcomm will be forced to halt the sale of most of its chips, which account for $39 billion in revenue. Qualcomm has dismissed Arm’s actions as a tactic to strong-arm the company into paying higher royalties, stating that Arm’s grounds for terminating the license are “completely baseless.”
Qualcomm also accused Arm of attempting to disrupt the legal process, expressing confidence that its rights under the agreement with Arm will be upheld. In response, an Arm spokesperson maintained that the company is taking formal action to protect its ecosystem, which has been built over 30 years. Arm is prepared to face the trial in December and remains confident that the Court will rule in its favor.
