Qualcomm and Arm begin new trial over chip testing tools

Investing.com -- Chipmaker Qualcomm and chip technology firm Arm Holdings started a new trial on Monday, with Qualcomm claiming Arm withheld chip testing tools required under their contract.

Qualcomm also claims Arm leaked information to the media about its 2024 threat to cancel a critical license agreement, which hurt negotiations for a chip deal between Qualcomm and Meta Platforms (NASDAQ: META).

In the lawsuit filed in US federal court in Delaware, Qualcomm is seeking to stop paying royalties to Arm for up to five years. The royalties could be worth billions of dollars.

Judge Maryellen Noreika is considering whether to remove the five-year royalty hold provision from the contract. If removed, Qualcomm would only be able to seek a smaller amount in damages.

Arm, owned by Japan's SoftBank Group, has denied breaking the contract and argued it did not harm Qualcomm's chip deals, which it called speculative.

Arm also countered that Qualcomm cannot seek damages for the leaked termination letter because Qualcomm leaked confidential details of antitrust investigations into Arm to the media.

The five-day jury trial represents another chapter in the difficult relationship between the two companies.

Original Article

You May Also Be Interested In

• Intel stock slides as TSMC explores Terafab tie-up, analyst flags share losses
• These Consumer Stocks Are The Top Analyst Picks at Raymond James
• Morgan Stanley cuts AutoNation, Group 1 as dealer headwinds mount