Arm Holdings PLC (NASDAQ:ARM) is reportedly cancelling a licensing agreement that allows Qualcomm to use its intellectual property to design chips.
According to Bloomberg News, Arm issued a 60-day notice, impacting Qualcomm’s ability to create its chips based on the Cambridge-based group's standards.
The latest heightening of hostilities comes amid a legal battle between the two companies, which began after Qualcomm acquired Nuvia, and Arm sued the company in 2022 for not renegotiating a new license.
Qualcomm has called the cancellation baseless, accusing Arm of using threats to increase royalty rates.
The trial is set for December in Delaware, and an Arm victory could disrupt Qualcomm’s chip shipments, affecting key partners like Microsoft. Despite the conflict, some analysts expect a settlement before the trial.