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The Qualcomm-ARM Controversy: Everything You Need To Know

The Qualcomm-ARM relationship is getting complicated due to the legal procedure, the SoC maker may face hurdles in the future to produce smartphone chips.

By Nikhil Srivastava
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We witnessed the on-paper clash between wireless chip leader Qualcomm and chip design firm Arm Holdings (ARM) on the heels of Qualcomm's Snapdragon Elite processor launch. 

Recently, Qualcomm showcased its technology and upcoming products at the Indian Mobile Congress 2024 in New Delhi, India. The brand explained how its chipsets could completely transform the automotive and technology industry if manufacturers adopted them for their products. Qualcomm was eager to show the recent Snapdragon X Elite processors for laptops and gaming tablets. It also showcased a Qualcomm Snapdragon 8 Elite-powered Realme GT7 Pro smartphone capable of running AAA games.

But behind the curtains, things are not good between Qualcomm and ARM. Both these hardware giants are on the turf, fighting out licensing issues. 

The situation is such that if things don't settle, Qualcomm could be in big trouble!

If you are interested in understanding the nitty-gritty of the Qualcomm-ARM controversy, grab a bucket of popcorn and read on. 

Qualcomm and ARM behind the scenes

Qualcomm has always used ARM designs as the foundation for its Snapdragon range of processors.

The dispute began in 2021 when Qualcomm acquired chip-design startup Nuvia. At the time, ARM alleged that the acquisition violated the terms of its licensing agreements with Qualcomm, claiming that Nuvia’s technology was being used in Qualcomm's new AI-focused PC chipsets without proper authorisation. In late 2022, the disagreement escalated into legal action.

ARM now insists that Qualcomm should eliminate all Nuvia designs created before the acquisition.

ARM has already went one step further by canceling the license. This is shocking for Qualcomm as well as its fans. If the company doesn’t resolve the issue, legal forces may push Qualcomm to stop selling multiple Snapdragon products, including Snapdragon X Elite processors.

"Following Qualcomm's repeated material breaches of Arm's licence agreement, Arm is left with no choice but to take formal action requiring Qualcomm to remedy its breach or face termination of the agreement. This is necessary to protect the unparalleled ecosystem that Arm and its highly valued partners have built over more than 30 years. Arm is fully prepared for the trial in December and remains confident that the Court will find in Arm's favour," said ARM in an official statement.

In return, Qualcomm also released a statement, saying, "This is more of the same from Arm — more unfounded threats designed to strongarm a longtime partner, interfere with our performance-leading CPUs, and increase royalty rates regardless of the broad rights under our architecture license. With a trial fast approaching in December, Arm's desperate ploy appears to be an attempt to disrupt the legal process, and its claim for termination is completely baseless. We are confident that Qualcomm's rights under its agreement with Arm will be affirmed. Arm's anticompetitive conduct will not be tolerated."

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Qualcomm SNapdragon

Will it stifle the mobile tech industry as we know it?

Qualcomm and ARM may have different focuses—Qualcomm is prioritising custom designs and branching into PC processors and automotive tech. ARM, meanwhile, remains focused solely on chip designs and instruction sets. The latest Oryon CPU in the Snapdragon 8 Elite mobile chip no longer uses ARM's design but it still needs the latter's instruction sets to work. The legal conflict poses a threat to Qualcomm’s future.

In the worst-case scenario, if the decision goes in favour of ARM during the trials in December 2024, Qualcomm would only be able to use older ARM designs. This restriction could stifle innovation, affecting productivity and delaying new product releases.

The smartphone and PC markets could face major setbacks since many brands are using Snapdragon chipsets. A brand like Samsung uses both Snapdragon and Exynos processors. It will be difficult for them to manufacture Snapdragon-based smartphones because the new chipsets completely rely on Qualcomm’s ARM-based chipsets. Although brands like Google have switched to Tensor SoCs, smartphone makers would need to rely on alternate options from MediaTek and Unisoc, two other vendors in the market. 

This situation could also impact the stock market, potentially leading to a drop in share prices for both companies and a rise in product prices. The ongoing dispute has already weakened investor confidence in both brands.

Let's hope for the best resolution by Qualcomm and ARM.

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