share_log

Qualcomm Bags Win In Chips Licensing Trial Against Arm, But The Battle Is Not Over Yet

Benzinga ·  12:14

Qualcomm Inc. (NASDAQ:QCOM) bagged a key win in its legal battle against semiconductor design company Arm Holdings Plc. (NASDAQ:ARM).

What Happened: A federal jury in Delaware ruled that Qualcomm did not violate its licensing agreement with Arm, clearing a hurdle for the San Diego, California headquartered chipmaker.

Qualcomm's win was the result of a mistrial after the jury could not resolve one of the three questions put before it for deliberation. This means Arm can take Qualcomm to the court once again in the future.

While the ruling said Qualcomm did not breach its licensing agreement with Arm, the jury could not determine if Nuvia is guilty of doing so. Nuvia is a startup that was acquired by Qualcomm in 2021 for $1.4 billion.

Qualcomm used Nuvia to bolster its Snapdragon X line of chips that power some Windows laptops. The company projected savings of up to $1.4 billion a year thanks to Nuvia acquisition.

Intel Stock Is Where It Was 27 Years Ago: How The World's Leading Chipmaker Lost The Plot, Thrice

Why It Matters: SoftBank Group-backed Arm threatened to cancel Qualcomm's chip design license ahead of the December trial.

Qualcomm's chips power many Android smartphones and tablets – these chip sales account for a large portion of the company's $39 billion revenue.

The company called it an attempt to "strong-arm a longtime partner."

"We are confident that Qualcomm's rights under its agreement with Arm will be affirmed," a Qualcomm spokesperson said, according to the report.

Price Action: Qualcomm stock gained over 1.8% in after-hours trading to hover around $152.89, while Arm stock fell by over 1.4% to $132.15, according to Benzinga Pro data.

Check out more of Benzinga's Consumer Tech coverage by following this link.

  • AAPL Stock Hits New High Despite Sales Slowdown: Tech Bull Says 'Street Is Realizing' iPhone 16 Marks The 'Start Of A Super Cycle' For Apple

Photo courtesy: Qualcomm

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment