The American giant Qualcomm can breathe easy: a federal jury in Delaware has just ruled in its favor in the conflict between it and the British company Arm.
This decision represents a major step forward for Qualcomm, which will be able to continue to develop its processors intended for laptops and artificial intelligence.
A multi-billion battle
At the heart of this trial, a dispute between the two semiconductor giants following a takeover operation. In 2021, Qualcomm bought the startup Nuvia for $1.4 billion. This strategic operation aimed to propel Qualcomm into the race for next-generation processors, particularly for Windows PCs and AI applications. But Arm, which provides the basic architecture for the design of these chips, challenged the legality of this transaction, arguing that Qualcomm used Nuvia’s intellectual property without authorization.
The stakes were colossal: Arm threatened to revoke Qualcomm’s license, which could have paralyzed a large part of its activities, representing nearly $39 billion in annual revenue. Tensions escalated in October 2024 when Arm sent a 60-day notice to terminate Qualcomm’s architectural licensing agreement.
After more than nine hours of deliberation, the jury ultimately ruled that Qualcomm’s processors are properly covered by its agreement with Arm. This decision therefore paves the way for the commercialization of chips developed with Nuvia technology, an essential element of Qualcomm’s strategy to conquer the PC market.
The financial markets reacted immediately: Qualcomm shares jumped nearly 3%while those of Arm fell by as many points. Bernstein analysts described this outcome as “clear victory for Qualcomm”even if some questions remain unanswered.
Future challenges for the processor market
This legal battle takes a new turn as The processor market is experiencing one of its biggest transformations. The emergence of artificial intelligence and the growing demand for more efficient PCs have reshuffled the cards. Qualcomm, historically dominant in the mobile sector, is looking to diversify its activities into the personal computer market, traditionally dominated by Intel and AMD.
Nuvia technology represents a major asset for Qualcomm in this diversification strategy. The first processors incorporating this technology are already in development, with renowned partners like HP and Microsoft planning to integrate them into their next generations of AI-optimized laptops.
For his part, Arm does not intend to give up and requests a new trial for the “unresolved points”. The British company, which provides the basic architectures to almost the entire mobile industry, actually takes a dim view of the emergence of potential competitors on its playing field.
The request for a new trial could reignite hostilities, but analysts believe that both companies would benefit from finding common groundtheir collaboration being essential for innovation in the sector.
- Qualcomm wins partial victory allowing continued development of its chips based on Nuvia technology
- The jury validates the legality of Qualcomm licenses but does not decide on all the questions of the dispute
- Arm announces intention to seek new trial on unresolved issues
