In a move that shook the semiconductor market, ARM sent a notification to Qualcomm canceling its chip design license, precisely during the Snapdragon Summit 2024, event where the American manufacturer presented its new Snapdragon 8 Elite processor in Hawaii.
The decision represents a significant escalation in the dispute between the companies, which began after Qualcomm acquired the startup Nuvia in 2021. ARM alleges that Qualcomm failed to negotiate a new license after the acquisition, violating existing agreements.
According to a Bloomberg report, which had access to the document, ARM gave Qualcomm a period of 60 days to resolve the situation. Otherwise, the American company will no longer be able to use ARM’s intellectual property to create its own chips.
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Qualcomm without ARM could create chaos in the smartphone market
The impact of this decision could be devastating for the mobile market, considering that Qualcomm processors power the vast majority of Android smartphones currently available. The company has also invested heavily in chips for computing and automotive applications.
Although Qualcomm’s new Oryon CPUs are developed in-house, the company still relies on ARM for the instruction set, a crucial interface between hardware and software. The first Oryon CPU, introduced with the Snapdragon X Elite last year, uses the ARMv8.7 instruction set.
The origin of the conflict dates back to 2022, when ARM sued Qualcomm after its acquisition of Nuvia. ARM demands that Qualcomm destroy Nuvia designs created before the acquisition, arguing that they cannot be transferred without prior authorization.
Qualcomm, for its part, maintains its position that it has broad licensing rights for its custom CPUs. The company, known for its legal battles, will certainly use all available legal resources to avoid an unfavorable outcome.
Qualcomm’s response
In a press release, Qualcomm states that ARM’s threats are baseless and aim to harm its business and increase royalties. The company believes that the attempt to cancel the license is a maneuver to interfere in the ongoing legal process and that its rights will be confirmed. Qualcomm says it is confident and accuses ARM of anti-competitive conduct.
Fonte: Bloomberg
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Source: https://www.adrenaline.com.br/hardware/arm-cancela-licenca-da-qualcomm-e-ameaca-futuro-dos-chips-snapdragon/
