Business
Qualcomm’s Licensing Crisis: The Legal Dispute Threatening to Disrupt the Smartphone Industry and Semiconductor Market
Qualcomm's license to create its own chips based on Arm standards could be revoked. This exacerbates an ongoing legal conflict between two significant firms that have contributed to the progression of the smartphone industry.
The looming confrontation could destabilize the smartphone and personal computer sectors, in addition to causing financial and operational upheaval for two of the most prominent firms in the semiconductor industry.
Qualcomm annually trades hundreds of millions of chips, which are employed in the majority of Android smartphones. If the annulment is enforced, the firm may be required to cease the sale of products that constitute a significant portion of its estimated US$39 billion earnings, or deal with demands for substantial compensation.
This development escalates a legal battle that originated when Arm, one of the largest customers of Qualcomm, filed a lawsuit against the San Diego-based company for contract breach and trademark violation in 2022. By issuing a termination notice, Arm is providing the American firm an eight-week window to resolve the disagreement.
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