In a move that could profoundly affect an already beleaguered global supply chain, Arm has reportedly issued Qualcomm a 60-day notice of cancelation for chip design licensing. The move, reported by Bloomberg, would have an impact on a majority of smartphone manufacturers that rely on Qualcomm chips.
U.K.-based Arm, which licenses chip architecture, issued the notice as part of a protracted battle with the Snapdragon producer. Much of the issue can be traced back to a dispute over contracts and trademarks that found Arm suing Qualcomm. Qualcomm returned with its own suit.
A spokesperson for the San Diego chipmaker told Bloomberg that the notice “appears to be an attempt to disrupt the legal process, and its claim for termination is completely baseless.”
Update: A spokesperson for Qualcomm tells TechCrunch, “This is more of the same from Aem – more unfounded threats designed to strongarm a longtime partner, interfere with our performance-leading CPUs, and increase royalty rates regardless of the broad rights under our architecture license. With a trial fast approaching in December, Arm’s desperate ploy appears to be an attempt to disrupt the legal process, and its claim for termination is completely baseless. We are confident that Qualcomm’s rights under its agreement with Arm will be affirmed. Arm’s anticompetitive conduct will not be tolerated.”
