The conflict between ARM and Qualcomm takes on a new dimension; ARM threatens to revoke the design license for its processors to regain control over the use of its technology. Qualcomm could lose access to intellectual property rights needed to design chips based on ARM architecture. What is important to understand here is that Qualcomm needs this license to be able to legally design and sell its Snapdragon mobile chips, which are based on this architecture.
Without the latter, the American company would no longer have the right to use ARM’s patented technologies to create new chips. This decision could have major repercussions on the Android smartphone industry, the vast majority of which use Snapdragon chips.
A legal battle between two sisters
The British giant ARM addressed Qualcomm 60 days notice to terminate their licensing agreement. This decision follows Qualcomm’s acquisition of the startup Nuvia in 2022, an operation which should have been accompanied by a renewal of the licensing agreements if ARM is to be believed. The latter even demands the destruction of the designs developed by Nuvia, believing that their intellectual property cannot be transferred without its authorization.
For his part, Qualcomm categorically rejects these accusations. A spokesperson for the San Diego company even called this approach “ attempt to disrupt the legal process » and “ bullying towards a long-term partner “. The American manufacturer maintains that its current agreements already cover the operations of Nuvia and its new Oryon processors. Quite a bag of knots.
A standoff with considerable stakes
The outcome of this conflict could shake up the mobile industry. If no agreement is reached after the notice period, Qualcomm could be forced to stop marketing its products or be exposed to heavy financial sanctions. The effects on the market could be very significant: slowdown or even complete cessation of production, increase in costs due to a change of suppliers, inertia in the development of new chips, etc.
The Oryon processors, the result of the acquisition of Nuvia, represent an immense strategic challenge for Qualcomm. Unlike ARM Cortex, these CPUs can equip both smartphones and laptops running Windows. A golden opportunity to compete directly with ARM solutions and to diversify its market beyond smartphones. The trial scheduled for the end of the year, in December, should shed light on this complex situation. that keeps the entire mobile industry on its toes.
- ARM threatens to revoke Qualcomm’s license, jeopardizing the design of Snapdragon chips and the future of Android smartphones.
- Qualcomm’s acquisition of Nuvia is at the heart of the conflict: ARM demands a license renewal and the removal of designs created without its authorization.
- A breakup between ARM and Qualcomm could disrupt the entire production of smartphones.
