Why two of the world’s biggest chip companies are ‘fighting’ in the US – Times of India

A legal battle between chip giants Arm and Qualcomm is set to begin in a Delaware court. The dispute centers on Qualcomm’s 2021 acquisition of chip designer Nuvia and the licensing of Arm’s chip architecture.

What is the case all about

The case revolves around Qualcomm’s use of Nuvia technology in its Snapdragon processors for PCs, phones, and cars. These processors have been adopted by major companies like Samsung, Microsoft, and Dell.

What each party is saying

While Arm, backed by SoftBank, has alleged that Qualcomm failed to obtain the necessary consent to transfer Nuvia’s license after the acquisition, Qualcomm, a major Arm customer, has maintained that its existing license covers the use of Arm’s technology in Nuvia’s designs.
Arm sued Qualcomm marking the first time in Arm’s 34-year history that it has taken legal action against a customer, exposing its typically confidential licensing agreements to public scrutiny. Qualcomm, no stranger to intellectual property disputes, has argued that Arm is using this lawsuit to leverage higher royalty rates and interfere with its product roadmap.

What is at stake

Rather than seeking monetary damages, Arm is asking the court to order Qualcomm to destroy products found to infringe on its intellectual property. Arm has even threatened to terminate Qualcomm’s license entirely, a move that could have significant consequences for both companies.
This trial comes at a critical time for both Arm and Qualcomm, as they seek to expand their reach in new markets, particularly in the booming field of artificial intelligence (AI).
Notably, Nuvia was co-founded by former top Apple chip designer Gerard Williams, who is now employed as a senior engineer at Qualcomm. Williams is also due to testify at the trial.