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Arm cancels Qualcomm’s chip design licence amid legal dispute

The SoftBank-backed company is battling the US semiconductor maker over royalty payments

SoftBank’s Arm has told US chipmaker Qualcomm it will cancel its chip design licence, raising the stakes in an intellectual property dispute set to go to trial in December.

Qualcomm confirmed the move on Tuesday, accusing Arm of “strong-arm” tactics designed to increase royalty rates for its intellectual property, which will “disrupt the legal process” under way in the US.

Many of Qualcomm’s chips use Arm’s design architecture, meaning a revocation of its licence potentially puts billions of dollars of revenue at risk. 

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