Qualcomm's $1.4 Billion Bet on Nuvia: A Strategic Move to Cut Costs on Arm Payments

Qualcomm estimated it could save $1.4 billion annually on payments to Arm by acquiring Nuvia. CEO Cristiano Amon explained this rationale at a trial, responding to claims Arm could demand that Qualcomm destroy Nuvia tech over licensing issues. The acquisition aims to bolster Qualcomm's PC market position.

Internal Qualcomm documents revealed the company estimated it could save up to $1.4 billion annually on payments to Arm by acquiring the startup Nuvia in 2021. The projection was disclosed during a trial as CEO Cristiano Amon testified about Qualcomm's strategy.

Amon emphasized that the potential savings justified the acquisition, which aimed at reducing costs related to royalty payments to Arm. The trial seeks to resolve disputes over whether Arm can compel Qualcomm to dismantle technology obtained from Nuvia due to unapproved license transfers.

This legal wrangle is tied to Qualcomm's ambition to expand its presence in the PC market by leveraging Nuvia's capabilities while managing their reliance on Arm's designs. Closing arguments in this high-profile trial are expected on Thursday.

(With inputs from agencies.)