ARM Files Trademark Infringement Lawsuit Against Qualcomm... Will Nubia Acquisition Fall Through?

(Photo by Bloomberg)

[Asia Economy Reporter Yujin Cho] ARM, a UK semiconductor design company owned by Japan's SoftBank Group, filed a lawsuit on the 31st (local time) against US semiconductor company Qualcomm and Nuvia, recently acquired by Qualcomm, for breach of contract and trademark infringement.

Major foreign media reported that ARM sued Qualcomm for license contract violations and trademark infringement, highlighting a legal battle between two of the world's most influential semiconductor companies.

According to the complaint filed in the US District Court for Delaware, ARM demanded Qualcomm and Nuvia to discard semiconductor chip designs created under the license agreement with ARM. ARM claimed that Nuvia could not transfer this license to Qualcomm without ARM's consent.

ARM stated in a press release, "The license agreement with Nuvia was terminated in February due to unresolved negotiations."

Foreign media are paying close attention to whether this lawsuit will escalate following Qualcomm's failed acquisition of Nuvia in January last year. Bloomberg News analyzed that this litigation could undermine Qualcomm's efforts to reduce its dependence on ARM through the acquisition of Nuvia.

Qualcomm acquired CPU design startup Nuvia in January last year for $1.4 billion (approximately 1.88 trillion KRW) in cash to reduce its revenue dependence on its core smartphone business and expand its market share in laptop chips.

Nuvia, founded in 2019 by three engineers from Apple and Google, including the former chief responsible for Apple iPhone CPU design, is a semiconductor startup specializing in high-performance processors and CPU design.

Headquartered in San Diego, Qualcomm is a semiconductor manufacturer focusing on processors and modem chips for smartphones. Due to the semiconductor market downturn, its stock price has plummeted 27% this year alone. Qualcomm's shares, listed on the New York Stock Exchange, closed down 1.04% at $132.27 on the day.

This content was produced with the assistance of AI translation services.