Qualcomm leads edge AI platforms on Huawei deal, says Baird

Qualcomm and Arm are in a trial over royalty payments for Arm's next-gen chip architecture. Arm seeks a 1,800% increase, while Qualcomm argues its 2013 license caps royalties. Qualcomm claims a leaked Arm letter cost it a $170M deal with Meta. The trial concludes Friday.

Qualcomm, which acquired Nuvia in 2021, is suing Arm for allegedly failing to provide promised chip-testing tools. Qualcomm seeks to halt royalty payments for up to five years, which could cost Arm ~9% of its 2026 revenue, according to Intellectia. A court is also reviewing Arm's negotiation practices for new chip technology.

Qualcomm and Apple renewed their global patent licensing agreement, effective April 1, 2027. The deal includes a multi-year chipset supply agreement, with Apple expected to use Qualcomm modems in some iPhones starting in 2023.

Qualcomm and Arm are in a five-day jury trial over a contract dispute stemming from Qualcomm's 2021 acquisition of Nuvia. Qualcomm alleges Arm violated their contract by withholding chip-testing tools and seeks to halt royalty payments for up to five years. Arm denies these claims. The outcome could impact billions in royalties and future chip technology negotiations. Arm's revenue from Qualcomm is estimated at 9% of its 2026 fiscal year revenue, according to Intellectia.

Qualcomm and Arm began a five-day trial in Delaware. Qualcomm seeks to halt royalty payments to Arm for up to five years, potentially saving billions. The outcome could impact Qualcomm's financials and Arm's revenue.

Qualcomm licensed Huawei's LogicFolding 3D chip patents in a multi-year cross-license deal. Huawei expects its patent licensing agreements, including this deal, to exceed $6.9 billion. The agreement covers 5G, AI, computing, and networking technologies. Huawei's chip architecture, developed under U.S. sanctions, was independently verified by a teardown.