Arm To Cancel Qualcomm's Chip Design License As Tech Feud Deepens

Arm has moved to cancel Qualcomm's architectural license agreement, escalating a legal battle that threatens to upend the global smartphone and PC chip markets. The British chip designer issued Qualcomm a 60-day termination notice for the license that allows the U.S. chipmaker to design custom processors using Arm's intellectual property. The cancellation could force Qualcomm to halt sales of products that generate much of its $39 billion annual revenue, Bloomberg reports.

The dispute stems from Qualcomm's $1.4 billion acquisition of chip startup Nuvia in 2021. Arm claims Qualcomm breached contract terms by using Nuvia's designs without permission, while Qualcomm maintains its existing agreement covers the acquired technology. The companies are set for a December trial to resolve Arm's 2022 breach-of-contract lawsuit and Qualcomm's countersuit. Arm is demanding Qualcomm destroy Nuvia designs created before the acquisition.