Qualcomm's win against Arm in chips trial; Qualcomm shares rose, Arm shares fell

From Investing.com: 2024-12-20 19:40:50

A jury found that Qualcomm’s central processors are properly licensed under an agreement with Arm Holdings. The trial ended in a mistrial as the jury couldn’t resolve all questions. Arm plans to seek a new trial. Qualcomm’s shares rose 1.8%, while Arm’s fell 1.8% in extended trading. The case may be tried again in the future.

The jury couldn’t reach a unanimous verdict on whether startup Nuvia breached its license with Arm. However, Qualcomm, which purchased Nuvia, was not found to breach the license. Qualcomm’s chips, crucial for its laptop market push, are properly licensed under an agreement with Arm. This outcome allows Qualcomm to continue selling them.

Qualcomm sees the jury’s decision as a vindication of its right to innovate. Arm expressed disappointment over the lack of consensus and emphasized the goal to protect its intellectual property. This outcome clears the way for Qualcomm to advance its “AI PC” laptop chips, competing against Nvidia, AMD, and MediaTek, who also plan to make Arm-based processors.

The dispute between Arm and Qualcomm centered on royalty rates for chips. Before Qualcomm acquired Nuvia, the startup was set to pay higher rates. This trial outcome raises questions about where Arm’s technology boundaries lie. Arm licenses its architecture, but some customers develop their own custom cores. The trial’s outcome could impact the entire tech industry.



Read more at Investing.com: Qualcomm secures key win in chips trial against Arm By Reuters