ARM Threatens to Cancel its Chip License with Qualcomm [Android News Byte]

ARM isn't happen with Qualcomm's Acquisition of Nuvia and they want to renegotiate their terms.

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Links
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Bloomberg Report - https://www.bloomberg.com/news/articl...


Video Description
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Good afternoon, everyone, and welcome to another edition of the Android News Byte.
Today, I wanted to highlight a news article that talks about ARM's plan to cancel their IP license deal with Qualcomm within 60 days unless they agree to renegotiate their terms.

This is big news for the Android hardware industry and it could result in some massive changes going forward.

#android #qualcomm #arm

ARM Sues Qualcomm
If you're not familiar with this dispute, it began back in 2022 when ARM sued Qualcomm after the latter acquired Nuvia.
That acquisition has paved the way for Qualcomm to launch the Snapdragon 8 Elite, but it was a move that did not make ARM happy at all.

ARM filed the lawsuit claiming that Qualcomm was in breach of their licensing contract. They believe the current contract with Qualcomm was expired immediately when they acquired Nuvia. With ARM wanting to renegotiate its contract terms for a higher royalty percentage.

ARM is under the belief that those contracts are not allowed to be transferred to Qualcomm.

As they have been unable to come to an agreement over this dispute, the two companies have been schedule to present their cases in court.


Revoking Qualcomm's License
This story has just been escalated this week with word from ARM who says they are going to scrap their licensing agreement with Qualcomm.
ARM is said to be giving Qualcomm 60 days notice.

It's this licensing agreement that allows Qualcomm to create their Snapdragon chips.
Which are based on IP that is currently owned by ARM.

Qualcomm said in a statement that this move appears to be an attempt to disrupt the legal system, as the two were supposed to present their case in the middle of December. Qualcomm continues by saying its claim for termination is completely baseless and they are confident that this will be affirmed in court.

However, this seems to be yet another move from ARM to pressure Qualcomm into renegotiating its terms
Which could save them some legal fees as they will be forced to use the courts to prevent this from moving forward.


conclusion
ARM has been working to improve its chip designs so they are more complete and require less work from chip designers like Qualcomm and MediaTek.

However, Qualcomm has chosen to go another route with the launch of its custom Oryon CPU cores. Which would make them a less profitable customer to ARM. So you can see how the two seem to be going down different paths.

Qualcomm is still heavily reliant on ARM at this time and will either need to come to a new agreement on royalties, win the court case that will be starting soon, or make the switch to RISC-V (which is an open-source instruction set architecture

This transition to RISC-V is definitely appealing to a lot of companies, but there seems to be a lot of work still needing to be completed before that output is possible.

However, Jim Keller has been working on creating custom RISC-V cores at Tenstorrnet. A company that is the CEO for.
He's been known for designing chips like these for AMD, Apple, Intel, and a few others.
So if it can be done, he's likely one of the few that will be able to push its progress forward.

But I want to know what you think about this news down in the comments section below.
Are you siding with ARM here or do you think Qualcomm will prevail?

And please, do not forget to like this video and subscribe to the channel for more Android news content like this.



Summary
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1. Intro [00:00]
2. ARM Sues Qualcomm [00:31]
3. Revoking Qualcomm's License [01:40]
4. Conclusion [02:53]


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