Updated: October 23, 2024 (4:33 p.m. ET): Both Qualcomm and Arm have shared official statements with Android Authority regarding the suspension of the license. Here’s what Arm had to say:

Arm: As a result of Qualcomm’s repeated material violations of Arm’s license agreement, Arm has no choice but to take formal action requiring Qualcomm to cure its violation or risk termination of the agreement. This is necessary to protect the unprecedented ecosystem that Arm and its valued partners have built over 30 years. Arm is fully prepared for the December trial and remains confident that the Court will rule in his favor.

Qualcomm is understandably not too pleased with Arm’s impactful move here, and isn’t mincing words about how he characterizes the action:

It’s much the same from ARM: more unfounded threats designed to strengthen a long-standing partner, interfere with our cutting-edge processors, and increase royalty rates, regardless of our extensive rights. architecture license.

In a statement to Android Authoritya Qualcomm spokesperson makes it clear that the company has no intention of agreeing to this and looks forward to asserting its rights in court:

With the trial fast approaching in December, Arm’s desperate ploy appears to be an attempt to disrupt the legal process, and his request for dismissal is completely without merit. We are confident that Qualcomm’s rights under its agreement with Arm will be upheld. Arm’s anti-competitive behavior will not be tolerated.

While the outcome of these proceedings depends on so much, we will keep a close eye on what both companies do next in the weeks to come.

Original article, October 22, 2024 (11:31 p.m. ET): In a significant update, Arm has decided to end its licensing agreement with Qualcomm. This decision could affect the very heart of Android phones: the Snapdragon chips.

This growing legal dispute between the two companies threatens to disrupt Qualcomm’s business and the smartphone industry as a whole. Snapdragon processors power most Android smartphones and Qualcomm generates around $39 billion in revenue from this business. If Arm cancels Qualcomm’s license, Qualcomm could face a sales halt or possible lawsuits for damages, leaving consumers in a difficult position regarding the availability of Snapdragon-powered devices. It could also block innovation of future chips from Qualcomm and potentially lead to price hikes or shortages of Android phones.

In 2022, Arm filed a lawsuit against Qualcomm, accusing the company of violating contract terms following its acquisition of Nuvia, another Arm licensee. The acquisition is important for Qualcomm’s plans to integrate Nuvia technology into upcoming laptops and improve its Snapdragon chips for smartphones.

Arm’s decision to cancel Qualcomm’s license also reflects a strategic shift in its business model under new management. Instead of supplying instruction sets to companies like Qualcomm, Arm now offers complete chip designs. This makes Arm a direct rival to Qualcomm, complicating previously friendly relations between the two companies.