Legal Showdown: Arm vs. Qualcomm's Semiconductor Ambitions

In a Delaware federal court, Arm Holdings is in a legal battle against Qualcomm, seeking the destruction of chip designs acquired from Nuvia in 2021. The case tests Qualcomm’s market expansion with Nuvia's technology and Arm’s role as a neutral player in the chip industry.

A federal jury in Delaware announced on Friday that it remains deadlocked on one of the three key questions in Arm Holdings' lawsuit against Qualcomm. However, deliberations on the remaining questions continue.

Arm's lawsuit demands the destruction of chip designs that Qualcomm acquired from Nuvia for $1.4 billion in 2021. These designs have been crucial to Qualcomm's entry into the personal computer market. The verdict could impact Qualcomm's growth in new markets with Nuvia's technology and assess Arm's neutrality in the industry.

Both Nuvia and Qualcomm previously held license agreements with Arm. Qualcomm aimed to transfer Nuvia's designs post-acquisition, but Arm argued permission was required and canceled Nuvia's license, leading to this legal battle. A unanimous eight-person jury verdict is needed. Currently, the jury is deadlocked on whether Nuvia breached its Arm agreement but continues deliberations on Qualcomm's potential breaches and licensing legitimacy.

(With inputs from agencies.)