Arm Holdings to cancel Qualcomm chip design license
According to a recent report by Bloomberg, Arm Holdings has initiated steps to revoke its long-standing partner Qualcomm's license to use Arm's intellectual property for chip design.
The company has issued a mandated 60-day notice to Qualcomm, informing it of the cancellation of the licensing agreement.
Should the cancellation proceed, Qualcomm may face significant financial losses or be forced to halt sales of products that account for a large portion of its US$39 billion revenue. This follows Arm's 2022 lawsuit against Qualcomm, alleging that the latter misused Arm's intellectual property after acquiring CPU startup Nuvia.
In response, a Qualcomm spokesperson said that this is Arm's unfounded threats designed to strongarm a longtime partner. It interferes with Qualcomm's performance-leading CPUs, and increases royalty rates regardless of the broad rights under the architecture license.
Qualcomm also expressed confidence that the court will uphold its rights under the current agreement in the upcoming December trial, calling Arm's actions desperate and unjustified.
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