Qualcomm and Arm begin trial with billions in royalty stakes
Qualcomm and Arm began a five-day trial Monday in U.S. federal court in Delaware. Qualcomm accuses Arm of withholding chip testing tools required under contract and leaking a 2024 license termination threat. Qualcomm seeks to stop royalty payments to Arm for up to five years, potentially costing Arm billions.
Qualcomm also claims the alleged leak hurt negotiations for a chip deal with Meta. Its lawyers told jurors the deal lost $170 million in value before Qualcomm secured the agreement. Arm disputes that claim, arguing Meta shifted from virtual reality headsets toward AI glasses and changed the deal for that reason.
Meanwhile, a related bench trial will examine Arm’s negotiations over its next chip architecture. Qualcomm says Arm sought an 18,500% royalty increase between architecture versions 9 and 10. Arm argues Qualcomm’s older licensing terms no longer reflect today’s larger chips. Qualcomm’s agreement with Arm runs through 2033.
Why it matters
The ruling could materially affect Qualcomm's licensing costs and Arm's royalty revenue. It may also shape licensing negotiations across the semiconductor industry.
