Dispute escalates ARM terminates Qualcomm's architecture license

Chip designer Qualcomm confirms receiving a 60-day notice for the termination of the ARM architecture license. The architecture is used in all Qualcomm Snapdragon chips, which are used in many smartphones and notebooks. Is this the end of Qualcomm's ARM processors?

This painful step, reported by Bloomberg, is based on a licensing dispute that has been ongoing since 2022. Qualcomm bought the semiconductor startup Nuvia in 2021, whose Phoenix core is based on technology and architectural licenses from ARM. However, ARM contends that these licenses were not transferable with the acquisition and sued the major chip designer for continuing to develop processors based on the licensing. Qualcomm countered that its own ARM license would cover the Nuvia designs anyway. This will inevitably lead to a legal battle between the two partners.

Qualcomm is heavily involved in the business with Snapdragon processors: only (weaker) Mediatek SoCs are more commonly found in smartphones. Many high-end smartphones use Snapdragons, and now also the first notebooks with the new Snapdragon X Elite and Snapdragon X Plus. These contain Oryon cores, which in turn are a customized version of the Phoenix architecture.

ARM has now given Qualcomm 60 days as an ultimatum to reach an agreement before the termination is issued. From ARM's perspective, this would mean not just a loss of the license but also a halt in the production and sale of all (!) ARM chips.

Qualcomm continues to act as if nothing has happened

So far, Qualcomm remains unfazed by the threats. For two years, the chip designer has made no moves to break away from ARM—on the contrary: new ARM processors continue to hit the market. Qualcomm thus continues the tightrope walk of advancing the development and business of chips with ARM architecture, as if there were no legal battle with the licensor.

"In light of the upcoming trial in December, ARM's desperate trick seems to be an attempt to disrupt the legal process. Its claim for termination of the process is completely unfounded. We are confident that Qualcomm's rights under the agreement with ARM will be affirmed. ARM's anti-competitive behavior will not be tolerated," a Qualcomm spokesperson is quoted by androidauthority.com.

For ARM, Qualcomm is an important partner, but not indispensable

It may seem as if ARM is cutting its own flesh by apparently going after one of its largest partners with all resources available. However, as the licensor of the architectural base, the British company sees itself as a bigger fish in the pond. Thanks to several chip designers, not only Qualcomm, the architecture is quite successful. Especially with Apple's M-series ARM CPUs, it has become indispensable in notebooks. The X86 competitors are also getting nervous, as the once bitter rivals AMD and Intel recently formed an architectural alliance.

The feud with Qualcomm shows that ARM is now aiming for a larger share of the pie in the long term, likely speculating on granting stricter and more expensive licenses in the future. However, until the duel between ARM and Qualcomm is settled, the semiconductor market is still spared from its effects. Only with the court decision will this change. (mc)

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