Arm has escalated its feud with Qualcomm by canceling the architecture license that allowed Qualcomm to use its intellectual property and standards for chip design, a move that could have significant financial and operational implications for both companies. This action comes two years after Arm filed a lawsuit against Qualcomm and follows a previous lawsuit related to Qualcomm’s acquisition of Nuvia, one of Arm’s licensees. Arm argues that Nuvia breached their contract by not obtaining the necessary permits for the license transfer, leading to the termination of their licenses. As a result, Qualcomm may have to stop selling many of the chips that contribute to its $39 billion in revenue if the issue is not resolved within 60 days. Qualcomm believes this is a tactic by Arm to increase royalties and disrupt its business, while Arm maintains that it is necessary to protect its ecosystem and partners. Both companies are preparing for a trial in December to address the dispute.
