Qualcomm alleged that Arm’s open licensing model created a huge dependence on its technology and threatened market dynamics.

Also Read: Softbank-Backed Arm Holdings 155% Post-IPO Surge Bolstered by AI Growth and Smartphone Integration

The British chipmaker blocked access to boost profits through its chipmaking ambitions. Arm denied the allegations.

The legal tension between the semiconductor chip companies highlights intense rivalry amongst the companies to grab a larger pie associated with the artificial intelligence frenzy.

In December 2024, a federal jury in Delaware ruled that Qualcomm did not violate its licensing agreement with Arm.

Qualcomm’s chips power Android smartphones and tablets, generating a large portion of the company’s $39 billion revenue.

Arm reportedly competes with Qualcomm to supply Meta Platforms Inc (NASDAQ:META) with data center CPUs.

Reportedly, Arm planned to boost prices by up to 300% and has discussed manufacturing its chips. It aims to increase annual smartphone revenue by ~$1 billion over a decade, a strategy dating back to 2019.

Price Action: At the last check on Wednesday, QCOM stock was down 0.73% to $158.97. ARM is up 4.39%.

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