Arm, the chip technology company, has reportedly given Qualcomm a 60-day notice to terminate a license that allowed Qualcomm to design chips based on Arm’s technology. The notice comes amid Qualcomm’s announcement of its new mobile and automotive chips at its annual Snapdragon Summit in Hawaii. These chips introduce new generative AI capabilities in devices such as the Xiaomi 15 and the Asus ROG Phone 9.
Companies like Mercedes-Benz and Li Auto have shown commitment to integrating these AI-supporting automotive chips in their upcoming vehicles. Qualcomm has not confirmed whether these new chips are based on Arm’s standards. However, the central role of Oryon CPUs in both product lines is linked to the ongoing legal dispute.
Qualcomm responded to Arm’s notice, criticizing it as an unfounded move aimed at increasing royalty rates and interfering with Qualcomm’s CPU performance.
Arm terminates Qualcomm’s chip license
“This is more of the same from Arm — more unfounded threats designed to strong-arm a longtime partner,” Qualcomm said in a statement.
The conflict between the two companies is set to escalate in court, with a trial scheduled for December. The legal battle stems from Arm’s claim that Qualcomm failed to renegotiate a deal after it acquired Nuvia, an Arm licensee, in 2021. Arm alleges that Qualcomm used Nuvia’s chip designs in forthcoming products without proper authorization.
Qualcomm argued that its existing agreement with Arm covered Nuvia’s designs. Nuvia’s chip design is integral to Qualcomm’s Oryon CPUs, which are featured in the newly announced Snapdragon 8 Elite for premium Android phones and the Snapdragon Cockpit Elite and Snapdragon Ride Elite chips for automotive use. The outcome of the trial could significantly impact both companies and the semiconductor industry at large.
Arm declined to comment on the matter.
