Qualcomm’s lawsuit against chip technology supplier Arm Holdings is heading to a jury in a five-day trial to determine whether Arm breached licensing agreements and deliberately undermined Qualcomm’s business dealings with Meta Platforms. The case centres on allegations that Arm withheld software patches and design tools and violated an agreement intended to ensure Qualcomm paid no more than 10% above the lowest price for Arm’s processor designs.
The dispute highlights the deteriorating relationship between the two companies following SoftBank Group’s acquisition of control of Arm in 2016. Qualcomm, whose licence to use Arm’s computing architecture runs until 2033, argues that Arm’s actions threaten its chip business and future access to updated technology. Qualcomm has also accused Arm of attempting to damage its relationship with Meta by leaking a 2024 letter to Bloomberg that alleged Qualcomm had breached a key licensing agreement.
Arm has denied that Qualcomm suffered any harm, describing the lawsuit as an attempt to gain leverage in negotiations over licensing terms. The trial in the US federal court in Wilmington, Delaware, follows a 2024 legal battle in which Arm failed to convince a jury that Qualcomm had violated their licensing agreement. A related bench trial examining whether Arm is negotiating in good faith is also underway, with a decision potentially arriving later. The outcome could have significant implications for the companies’ future licensing arrangements and Qualcomm’s access to Arm’s chip architecture.
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