Arm has reportedly canceled a license granted to Qualcomm to design chips based on its chip technology, according to a Bloomberg report on Tuesday.
Arm has reportedly given Qualcomm a 60-day notice of the cancellation as required by law. This license lets the San Diego-based Qualcomm design its own silicon based on Arm chip standards.Â
The Bloomberg report comes just as Qualcomm announced its new mobile and automotive chips at its annual Snapdragon Summit in Hawaii. The chips represent milestones for Qualcomm that debut new generative AI capabilities for phones, including the Xiaomi 15 and Asus ROG 9 Phone, while automakers Mercedes-Benz and Li Auto have committed to using the AI-supporting automotive chips in upcoming vehicles.Â
Qualcomm did not confirm that these chips are designed based on Arm standards by the time of publication, but the Oryon CPUs at the heart of both product lines are tied to the lawsuit. The company pushed back on Arm's cancellation in a statement.
"This is more of the same from ARM -- more unfounded threats designed to strong-arm a longtime partner, interfere with our performance-leading CPUs and increase royalty rates regardless of the broad rights under our architecture license. With a trial fast approaching in December, Arm's desperate ploy appears to be an attempt to disrupt the legal process, and its claim for termination is completely baseless," Qualcomm's statement read. "We are confident that Qualcomm's rights under its agreement with Arm will be affirmed. Arm's anticompetitive conduct will not be tolerated."
Arm initially declined to comment and then released a statement affirming that it's prepared for a December trial that aims to settle dueling lawsuits between the companies.
"Following Qualcomm's repeated material breaches of Arm's license agreement, Arm is left with no choice but to take formal action requiring Qualcomm to remedy its breach or face termination of the agreement. This is necessary to protect the unparalleled ecosystem that Arm and its highly valued partners have built over more than 30 years," Arm's statement read.
The upcoming trial beginning in December lines up with Arm's 60-day deadline. Arm has claimed that Qualcomm did not re-negotiate a deal after the latter acquired an Arm licensee in 2021, the chip startup Nuvia, and used its chip designs in upcoming products. Qualcomm said its existing Arm agreement covered Nuvia, according to Bloomberg. Arm sued and Qualcomm counter-sued.Â
Nuvia's chip design is central to the Oryon CPUs at the heart of its newest chips, including the just-announced Snapdragon 8 Elite intended for premium Android phones and the Snapdragon Cockpit Elite and Snapdragon Ride Elite chips for cars.Â