Qualcomm shares fall on report Arm is set to scrap chip design license
UK-based Arm has given Qualcomm a mandated 60-day notice of the cancellation of their so-called architectural license agreement, Bloomberg News reported, citing a document. Qualcomm, like many other semiconductor groups, relies on Arm's instruction set to craft the chips underpinning much of the technology powering mobile electronics.Should the shutdown come into effect, it could substantially impact the global smartphone market.
Despite Qualcomm being one of its largest customers, Arm has been in a protracted legal feud with the San Diego, CA-based company. Arm has alleged that, following Qualcomm's acquisition of chip-design start-up Nuvia in 2021, Qualcomm has breached their contract and infringed on Arm's trademark. "Hence the timing of the cancellation notice suggests to us an attempt to force a pre-trial settlement," they added.
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