For $1.4 billion, Qualcomm just completed the acquisition of Nuvia, which would strengthen its ability to create unique chipset designs and enable it to compete across numerous markets. Sadly, ARM thinks the San Diego planned to transfer Nuvia’s licences without permission, and as a result, it is being sued for its activities.
When Nuvia’s licences expired in March, ARM reportedly tried to rectify the problem, but according to British chip design company Qualcomm, ARM has failed to uphold its half of the bargain and will consequently be subject to legal ramifications. ARM issued the following statement regarding the legal action it is taking against its partner, Qualcomm, even though Qualcomm has not yet responded to the lawsuit.
ARM wants Qualcomm to get rid of all chip designs created by Nuvia before the company is acquired.
“Arm takes pride in our role as innovator of the world’s most critical semiconductor IP and the billions of devices that run on Arm. These technological achievements have required years of research and significant costs and should be recognized and respected. As an intellectual property company, it is incumbent upon us to protect our rights and the rights of our ecosystem. We will work vigorously to protect what is rightfully ours and we are confident that the courts will agree with us.”
Given that Qualcomm doesn’t create its own processors, Nuvia is a crucial stepping stone for Qualcomm. Instead, it buys rights to ARM’s designs. With the acquisition, Qualcomm would be able to create unique ARM chips, just like Apple, and as a result, we might see later products that are significantly better and more worthy M1 competitors for the portable computer market. One thing to keep in mind is that by acquiring Nuvia, Qualcomm is now able to compete not only with Apple but also with Intel and AMD because they no longer need design licences to execute their jobs.
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