Arm terminates Qualcomm chip agreement ahead of trial

Arm Holdings is cancelling a key architectural license agreement with Qualcomm, escalating the legal dispute between the two companies. According to a Bloomberg News report, Arm has given Qualcomm a 60-day notice to terminate the agreement, which allows Qualcomm to design chips using Arm’s intellectual property. The two tech giants have been embroiled in a legal battle since 2022 when Arm sued Qualcomm for not renegotiating the license after its acquisition of chip startup Nuvia.

Qualcomm criticised Arm’s decision, calling it a ‘desperate ploy’ to disrupt the upcoming trial, which is set to begin in December. Qualcomm claims its rights under the agreement will be upheld and accuses Arm of anti-competitive behaviour. The dispute could impact shipments of laptops using Qualcomm’s chips, including Microsoft’s Copilot+ devices, and potentially reverse Qualcomm’s acquisition of Nuvia.

Despite the tensions, some analysts expect the companies to reach a settlement before the trial. A legal victory for Arm could have significant consequences for Qualcomm and its partners.