Following a Bloomberg story revealing that British chip designer Arm is seeking to revoke a crucial license for the American company, Qualcomm’s stock dropped by about 5% in premarket trading.
Arm has given Qualcomm 60 days’ notice that their so-called architectural licence deal will be terminated. Qualcomm is able to create semiconductors that use the Arm architecture thanks to the license in question.
Arm, which is mostly controlled by the massive Japanese financial institution SoftBank, functions by essentially licensing semiconductor design blueprints used by other businesses.
Arm remained silent. In the smartphone processor business, Qualcomm is one of the biggest companies in the world.
Hundreds of millions of smartphones are shipped each year with its chips installed. The business has recently increased its efforts in the personal computer market by releasing PC chips that can run AI applications.
Source (CNBC)
