In a shocking move, Arm cancels Qualcomm's license to manufacture Snapdragon chips

Arm cancels Qualcomm's license amid a legal battle over Nuvia acquisition.

: Arm has terminated Qualcomm's license to produce Snapdragon chips, citing a breach following Qualcomm's acquisition of Nuvia. This move intensifies the legal conflict between the companies, with Qualcomm arguing the existing agreement suffices. If unresolved, Qualcomm could face major revenue impacts as the licensing forms the backbone of its chip business. With a 60-day window for resolution, Qualcomm may have to negotiate to avoid disruption.

Arm has served Qualcomm with a significant blow by revoking its license to manufacture Snapdragon chips, which rely heavily on Arm's architecture. This termination comes from a 60-day notice linked to Qualcomm's acquisition of Nuvia, which Arm claims violated existing licensing agreements, as Nuvia had a separate contract with Arm.

Qualcomm, in response, insists that its purchase of Nuvia should not necessitate a new agreement, arguing that Arm's actions aim to undermine Qualcomm and disrupt ongoing legal proceedings. This conflict initially erupted when Arm sued Qualcomm in 2022, alleging breach of contract and trademark infringement, while Qualcomm countersued, setting the stage for an extensive legal battle.

The stakes are high for Qualcomm, as the Snapdragon chips contribute significantly to its approximately $39 billion annual revenue. With the license potentially ending, Qualcomm risks disrupting its entire mobile and PC chip operations, necessitating swift negotiation or settlement efforts within the limited time frame provided by Arm.

ArmQualcommLicensing Dispute