ARM to cancel Qualcomm CPU design license – gives 60 days notice

ARM is cancelling Qualcomm’s chip design license in 60 days

ARM Limited, the company behind the ARM CPU Instruction Set Architecture (ISA), has informed Qualcomm that its architectural license will be terminated in 60 days. This agreement allows Qualcomm to create processors using custom ARM CPU cores, like their new Oryon CPU cores.

Qualcomm is currently one of ARM’s largest customers, making the termination of their architectural license a lose-lose situation for ARM. Simply put, ARM does not want to lose one of its largest customers; it wants a renegotiated licensing agreement. In other words, ARM wants more money.

ARM and its legal battle with Qualcomm

Qualcomm acquired NUVIA in 2021 to enhance its CPU design prowess. NUVIA was founded in 2019 with leading CPU designers, many of whom worked on Apple’s early M-series processors. In 2022, ARM sued Qualcomm, arguing that Qualcomm and NUVIA had separate licensing agreements with ARM and that Qualcomm needed to renegotiate its agreement with ARM following its acquisition of NUVIA. The suit claims that Qualcomm’s use of NUVIA’s work illegally uses ARM’s intellectual property. ARM then cancelled NUVIA’s licenses in 2023.

This court case is due to come to trial in December. However, ARM’s latest move may force Qualcomm to renegotiate before this date and settle this legal matter outside of court.

Qualcomm’s response

ARM’s actions come at a challenging time for Qualcomm. Qualcomm is currently hosting media at their Snapdragon Summit in Maui, where the company revealed its next-generation Oryon core. Qualcomm claims this CPU is faster than Intel’s new Lunar Lake CPUs. However, ARM’s announcement has been upended by ARM announcing the cancellation of their CPU design license, which will prevent them from selling custom CPU cores.

Below is Qualcomm’s statement on ARM’s cancellation of their CPU design license, calling it a “desperate ploy.”

This is more of the same from Arm – more unfounded threats designed to strongarm 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. We are confident that Qualcomm’s rights under its agreement with Arm will be affirmed. Arm’s anticompetitive conduct will not be tolerated.

– Qualcomm to PC World

ARM wants more favourable licensing terms from today’s Qualcomm (which is a Qualcomm NUVIA hybrid), and Qualcomm wants to keep its older agreements. Who is in the right here? That’s for the courts to decide. Regardless, both companies have a lot of money on the line. ARM want more favourable licensing terms and is willing to take desperate actions to achieve this. Qualcomm is banking on its recent successes and size to maintain its original license agreements despite its NUVIA acquisition.

You can join the discussion on Qualcomm’s escalating feud with ARM on the OC3D Forums.