Qualcomm Gets Sued by ARM for Its Nuvia Acquisition, Putting the Chipmaker’s Ambitious Custom Chip Plans in Jeopardy

Qualcomm Gets Sued by ARM for Its Nuvia Acquisition, Putting the Chipmaker’s Ambitious Custom Laptop Chip Plans in Jeopardy

Qualcomm recently completed its Nuvia acquisition for $1.4 billion to bolster custom chipset designs with an aim to make powerful products and take on multiple categories. Unfortunately, ARM believes that San Diego intended to transfer Nuvia’s licenses without consent and is therefore being taken to court for its actions.

Qualcomm Allegedly Broke Its Agreement With ARM, With Its Nuvia Licenses Expired Back in March 2022

ARM apparently attempted to fix the issue when Nuvia’s licenses expired in March, but according to a British chip design firm Qualcomm has failed to hold its end of the deal and, therefore, will have to face legal repercussions. Though Qualcomm has yet to respond to the lawsuit, ARM said the following statement regarding the action it is taking against its partner. In a nutshell, ARM wants Qualcomm to get rid of any Nuvia-made chip designs prior to its acquisition.

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“Arm takes pride in our role as innovator of the world’s most critical semiconductor IP and the billions of devices that run on Arm. These technological achievements have required years of research and significant costs and should be recognized and respected. As an intellectual property company, it is incumbent upon us to protect our rights and the rights of our ecosystem. We will work vigorously to protect what is rightfully ours and we are confident that the courts will agree with us.”

ARM headquarters

Nuvia is an essential stepping stone for Qualcomm since the latter does not design its own chips. Instead, it licenses designs from ARM. With the acquisition, Qualcomm would be able to develop custom ARM chips, like Apple, and in doing so, we could see significantly improved products down the road for the portable computer market, a worthy M1 competitor. One thing to keep in mind is that this Nuvia acquisition does not only allow Qualcomm to compete with Apple but also with Intel and AMD since they do not need to rely on design licenses to get the job done.

Sadly, with the latest development, we will likely see both firms duke it out in court, with the legal processes likely lasting for years unless one or both parties come to an agreement.

News Source: ARM

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