Key facts
- Qualcomm is suing Arm Holdings in US federal court in Delaware.
- Qualcomm alleges Arm withheld chip testing tools and leaked information to the media.
- Qualcomm seeks to stop paying royalties to Arm for up to five years, potentially worth billions.
- Arm denies breaching its contract and claims Qualcomm's chip deals were speculative.
- Arm also alleges Qualcomm leaked non-public antitrust probe details to the media.
- A separate bench trial will address Arm's good faith negotiations for future chip technology.
Qualcomm and Arm Holdings are heading back to court in Delaware, reigniting a legal battle over contract disputes and alleged breaches. Qualcomm accuses Arm of withholding essential chip testing tools and leaking sensitive information to the media, which it claims damaged discussions for a significant chip deal with Meta Platforms.
In the lawsuit filed in US federal court, Qualcomm, a major customer of Arm, is seeking to terminate royalty payments for up to five years, a move that could amount to billions of dollars. However, the outcome hinges on Judge Maryellen Noreika's decision regarding a specific contract term, which could limit the damages Qualcomm can claim.
Arm, owned by Japan's SoftBank Group, has denied any wrongdoing, asserting that it did not breach its contract and that Qualcomm's chip deals were speculative. Arm has also counter-sued, alleging that Qualcomm leaked confidential information about antitrust investigations into Arm to the media.
This five-day jury trial marks another chapter in the long-standing contentious relationship between the two semiconductor giants. Arm had previously sued Qualcomm in 2022 for contract breaches, though Qualcomm secured a key victory in 2024. In a related bench trial, Judge Noreika will also examine whether Arm has negotiated in good faith for the next generation of its chip technology, as Qualcomm's current agreement with Arm extends through 2033.