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Arm plans to cancel chip design licence to Qualcomm or disrupt smartphone / PC market

Arm plans to cancel chip design licence to Qualcomm or disrupt smartphone / PC market

Source:our siteTime:2024-10-23Views: 20

October 23 news, according to Bloomberg reported today, Arm intends to cancel the license that allows long-time partner Qualcomm to use Arm intellectual property to design chips.Documents obtained by Bloomberg show that Arm notified Qualcomm 60 days i…

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October 23 news, according to Bloomberg reported today, Arm intends to cancel the license that allows long-time partner Qualcomm to use Arm intellectual property to design chips.


Documents obtained by Bloomberg show that Arm notified Qualcomm 60 days in advance to cancel the architecture license agreement. The license allows Qualcomm to design its own chips based on standards owned by Arm. The dispute could disrupt (roil) the smartphone and PC markets and have a financial and operational impact on the two semiconductor industry giants.


Qualcomm sells hundreds of millions of processors each year, which are widely used in most Android smartphones. If the cancellation takes effect, Qualcomm could be forced to stop selling most of the products that contribute about $39 billion (currently about 278.05 billion yuan) in revenue, or face large damages awards.


The action further exacerbates a legal battle between the two sides that has been ongoing since 2022. At that time, Arm sued Qualcomm, one of its largest customers, alleging breach of contract and trademark infringement. This notice of license cancellation sets an eight-week deadline for Qualcomm to resolve the dispute between the two parties.


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