Rita El Khoury / Android Authority
TL;DR
- Arm has issued a 60-day notice to terminate its architectural license with Qualcomm.
- The move could disrupt Qualcomm’s ability to design Snapdragon chips for smartphones.
- The cancellation could also lead to shortages and potential price hikes for Android smartphones.
In a significant update, Arm has decided to kill its licensing agreement with Qualcomm. The move could strike at the very heart of Android phones — Snapdragon chips.
According to a document obtained by Bloomberg, Arm has issued a 60-day notice to Qualcomm regarding the cancelation of their architectural license that allows Qualcomm to design chips based on Arm’s technology.
This growing legal dispute between the two companies threatens to disrupt Qualcomm’s business and the broader smartphone industry. Snapdragon processors power most Android smartphones, and Qualcomm generates approximately $39 billion in revenue from this business. If Arm cancels Qualcomm’s license, the latter might face a halt in sales or potential legal actions for damages, leaving consumers in a difficult position regarding the availability of Snapdragon-powered devices. It could also stall the innovation of Qualcomm’s future chips and potentially lead to price hikes or shortages of Android phones.
In 2022, Arm filed a lawsuit against Qualcomm, accusing the company of breaching contract terms following its acquisition of Nuvia, another Arm licensee. This acquisition is important for Qualcomm’s plans to integrate Nuvia’s tech into upcoming laptops and improve its Snapdragon chips for smartphones.
Arm’s decision to cancel Qualcomm’s license also reflects a strategic shift in its business model under new leadership. Instead of providing instruction sets to companies like Qualcomm, Arm now offers complete chip designs. This makes Arm a direct rival to Qualcomm, complicating the previously friendly relationship between the two companies.
