New troubles for Qualcomm: Arm has filed a complaint against the American founder and is demanding the outright destruction of chip designs developed by Nuvia. The start-up was acquired last year and is a big part of Qualcomm’s future.
If Arm’s lawsuit ever comes to fruition, Qualcomm would have a serious problem on its hands. The British company, which provides the whole industry with its chip designs (the famous ARM chips), believes that Qualcomm has violated its licensing agreements.
Destroy Nuvia designs
Arm, which is owned by giant Softbank, is seeking to destroy chip designs developed by Nuvia, a start-up acquired in 2021 by Qualcomm for $1.4 billion. Nuvia is responsible for a strategic mission within the American founder: to develop an ARM chip capable of competing with Apple’s M1. To destroy the designs of Nuvia chips is to call into question Qualcomm’s attempt to revive the consumer PC market.
Apple’s system-on-chip has knocked out the competition by giving Macs a particularly powerful and energy-efficient engine. Opposite, the Qualcomm Snapdragon chips that equip some PCs are not up to scratch. This is why the company wanted to speed things up by buying Nuvia, which was created by engineers who worked at Apple. Originally, Nuvia wanted to focus on the server chip market, but Qualcomm decided otherwise by shifting development to consumer chips.
Arm has worked for many years with Qualcomm, and the group will receive royalties on each Nuvia chip sold by Qualcomm. But it is possible that the agreement made by Nuvia to exploit Arm’s designs is less financially attractive for the latter. Qualcomm responded to Arm’s lawsuit by saying that its license covered all of its chips, including those from Nuvia.
Nuvia is definitely a problem nest, since Apple also filed a complaint against the start-up when it was launched!