Chip companies in a clinch
Arm terminates license agreement with Qualcomm
British chip designer Arm Holdings is terminating a key licensing agreement with US mobile chip manufacturer Qualcomm, according to a media report. The termination comes amid an ongoing legal dispute between the two technology giants.
Bloomberg News reported, citing a document, that Arm gave a required 60-day notice to terminate the agreement, which allows Qualcomm to use Arm's intellectual property to develop its own chips. Arm declined to comment, while Qualcomm did not immediately respond to requests for comment from Reuters outside regular business hours.
The termination comes amid an ongoing legal dispute between the two technology giants, which is due to be heard in federal court in the US state of Delaware in December. It centers on technology Qualcomm acquired through its takeover of Nuvia, a chipmaker founded by Apple chip engineers and purchased for $1.4 billion in 2021.
Arm, majority-owned by Japan's SoftBank Group, had sued Qualcomm in 2022 for failing to negotiate new licenses after the acquisition.
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