Qualcomm vs Arm: Billions in Chip Royalties at Stake in Delaware Court Battle
Delaware, United States, October 2026: Qualcomm and Arm are facing off in federal court in Delaware in a dispute that could affect billions of dollars in chip royalties.
Qualcomm's claims
Qualcomm accuses Arm of:
- Violating agreements between the two companies
- Withholding technical resources Qualcomm needs
- Interfering with Qualcomm's business relationships
If Qualcomm wins, it could stop paying certain Arm royalties for several years.
Why the relationship matters
Arm, majority-owned by Japan's SoftBank, designs the instruction set architecture and processor designs used in almost every smartphone, including Qualcomm's Snapdragon chips, and increasingly in PCs and data centres. Arm earns money by licensing its technology and collecting royalties on each chip sold.
The bigger conflict
The case is part of a broader fight:
- In 2022, Arm sued Qualcomm over its acquisition of chip designer Nuvia, arguing Qualcomm needed new licences to use Nuvia's Arm-based designs. A Delaware jury largely sided with Qualcomm in December 2024.
- Arm has been moving toward designing full chips itself and seeking higher royalty rates, which puts it in competition with some of its own customers.
Why it matters
- Smartphones and PCs: royalty costs affect chip prices and, ultimately, devices.
- AI PCs and data centres: Qualcomm is pushing Arm-based chips into Windows laptops and servers, where licensing terms are crucial.
- Industry model: the outcome could shape how Arm balances being a neutral licensor with becoming a chip seller.
- RISC-V: disputes like this encourage companies to explore the open-source RISC-V architecture as an alternative.
What happens next
The court's decision, and any appeals, could take months. Watch for any settlement, which is common in large licensing disputes.
This article is for general information and is not legal advice.
Sources
- TechStartups, "Tech News Weekly Roundup" (9 October 2026): https://techstartups.com/2026/10/09/tech-news-weekly-roundup-the-biggest-stories-in-ai-big-tech-startups-and-cybersecurity/