Qualcomm sues Arm over royalty payments and alleged leak of termination notice

A federal jury trial in Wilmington, Delaware, will begin Monday between chipmaker Qualcomm and chip-design firm Arm Holdings, overseen by Judge Maryellen Noreika. Qualcomm alleges Arm withheld essential chip-testing tools required under their licensing deal and leaked a 2024 termination notice that undermined negotiations with Meta Platforms, prompting Qualcomm to seek a halt to royalty payments that could total billions over five years.

Arm, a SoftBank subsidiary, rejects the accusations, saying no contract breach occurred and that Qualcomm’s own disclosure of non-public antitrust probe details caused the media leak. The judge will also consider whether Arm has negotiated in good faith for the next generation of its technology. The dispute follows Arm’s 2022 lawsuit against Qualcomm and a 2024 ruling that favored Qualcomm on a separate issue.

Both companies rely on the agreement, which runs through 2033, for critical chip designs used in smartphones and data-center processors. The outcome could reshape royalty structures and competitive dynamics in the semiconductor sector.