Ming-Chi Kuo on the dispute between Arm and Qualcomm: The probability of canceling the authorization is extremely low, and if it happens, both sides will suffer

On October 24, Bloomberg reported yesterday that Arm plans to cancel the license that allows its long-term partner Qualcomm to use Arm intellectual property to design chips.

Today, analyst Ming-Chi Kuo wrote, "I think the chances of ARM cancelling Qauclomm's license are extremely low. If it happens, both sides will suffer and no one will be the winner. It is expected that this dispute will eventually be settled in some form."

Earlier today, Arm responded to the matter by saying that due to Qualcomm's repeated and serious violations of the Arm licensing agreement, Arm had no choice but to take formal action to require Qualcomm to correct its breaches, otherwise it would face the consequences of the termination of the agreement. Arm said that "this move is critical to protecting the unparalleled ecosystem that Arm and our extremely valued partners have built over the past 30 years." The company is fully prepared for the December trial and firmly believes that the court will make a ruling in favor of Arm.

Yesterday, a Qualcomm spokesperson responded to this by saying, "This is Arm's usual practice - more unfounded threats aimed at forcibly oppressing long-term partners, interfering with our performance-leading CPU products, and ignoring the extensive rights already covered by the two parties' architecture license agreement to increase licensing rates. Arm's desperate move appears to be an attempt to interfere with the legal process before the upcoming court hearing in December, and its request to terminate the license agreement is unfounded. We are confident that the rights covered in the Qualcomm-Arm agreement will be confirmed by the court. Arm's anti-competitive behavior will not be tolerated."