According to a Bloomberg report, Arm has formally notified Qualcomm that it will cancel the architecture licensing agreement between the two companies. This marks a significant escalation in the ongoing legal conflict between the technology giants, drawing attention across the global semiconductor industry.
Arm has issued a mandatory 60-day termination notice to Qualcomm, revoking the license that allows Qualcomm to design and manufacture chips based on Arm’s proprietary instruction set architecture.
Qualcomm ships hundreds of millions of processors each year, powering the majority of Android smartphones. If the termination takes effect, Qualcomm may be forced to halt sales of key products that contribute to a large portion of its approximately $39 billion in annual revenue, or face substantial legal and financial consequences.
⚖️ Core of the Conflict: The Nuvia Acquisition #
The dispute traces back to Qualcomm’s $1.4 billion acquisition of CPU design company Nuvia in 2021. In August 2022, Arm filed a lawsuit in Delaware, alleging that Qualcomm violated existing licensing terms by using Nuvia’s technology without negotiating a new architectural license. Arm is seeking compensation and enforcement of licensing restrictions.
🗣️ Qualcomm’s Response #
In response to Arm’s latest action, a Qualcomm spokesperson stated:
“This is a typical Arm tactic of continually issuing unsubstantiated threats to try and strong-arm a long-time partner, interfere with our performance-leading CPU, and raise royalty rates, regardless of the rights we enjoy under the architectural license. Arm’s behavior appears to be an attempt to subvert the legal process as the trial approaches in December. Its demand for termination is completely unfounded. We are confident that Qualcomm’s rights under its agreement with Arm will be affirmed. Arm’s anticompetitive conduct will not be tolerated.”
Arm declined to comment further on the report.
📉 Potential Impact on the Global Tech Industry #
The lawsuit is scheduled for trial in December in a Delaware federal court. If Arm wins the case, Qualcomm and roughly 20 partners—including major PC ecosystem players—could be forced to stop shipping new laptops based on the disputed CPU designs. It could also undermine the strategic value of Qualcomm’s Nuvia acquisition.
Despite the tense standoff, some analysts believe a settlement remains possible before the trial, given the mutual dependence between the companies and the high financial stakes involved. The outcome of this legal battle is expected to have far-reaching implications for the global semiconductor industry, CPU architecture licensing models, and the competitive landscape of mobile and PC computing.