Qualcomm requires ARM to sustain its presence in different chipset markets.
Amidst the launch of the new Snapdragon 8 Elite, Qualcomm is at risk of losing its chip architectural license from ARM after the latter gave a 60-day notice. ARM informs Qualcomm that it’s terminating its chip license design.
Qualcomm is one of the major customers of ARM, alongside Apple, Samsung, and Nvidia. Its chipsets for smartphones, laptops, and the automotive industry rely on ARM’s architectural design.
Without that license, it will severely impact the ability of the semiconductor giant in producing chipsets. The current development likely stemmed from a legal dispute in 2022, where ARM alleges Qualcomm over a breach of contract and trademark infringement during development of custom Phoenix cores without ARM’s consent.
Is there a workaround? It won’t be an easy thing for Qualcomm. Although the company now has custom Oryon cores, which don’t have ARM cores, they still depend on ARM’s instruction set that lets hardware and software communicate.
The more realistic approach is a settlement outside of court to appease ARM and continue its deal with Qualcomm. It may cost much in the forefront but it will allow Qualcomm to continue its business without starting from scratch.
If the situation goes south, MediaTek is likely to gain significant momentum. Samsung, HUAWEI, Unisoc, and other chipset makers will get their best chance to occupy the void left by Qualcomm.
Will the two reach an agreement?
