Arm Holdings to cancel Qualcomm chip design license: reports

Arm Holdings Plc is cancelling an architectural license agreement that allowed partner Qualcomm Inc to use the British chipmaker’s intellectual property to design chips, Bloomberg News reported on Tuesday, citing a document.

Arm has given Qualcomm a mandated 60-day notice of the cancellation of the licensing agreement, the report said, adding that the contract allows Qualcomm to create its own chips based on standards owned by Arm.

Arm declined to comment on the report, while Qualcomm did not immediately respond to a Reuters request for comment outside regular business hours.

The report comes amid the ongoing legal battle between the two tech giants, which is scheduled to begin in the federal court in Delaware in December.

The British company, which is majority-owned by Japan’s SoftBank Group, sued Qualcomm in 2022 for failing to negotiate a new license after it acquired a new company.

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The suit revolves around technology that Qualcomm, a designer of mobile chips, acquired from a business called Nuvia that was founded by Apple chip engineers and which it purchased in 2021 for $1.4 billion.

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