The two giants Qualcomm and Arm have announced the termination of their cooperation, causing their stock prices to open significantly lower.
On October 23rd Eastern Time, the two major chip giants in the US stock market opened lower and closed lower. Qualcomm's largest intraday decline reached 5.13%, closing down 3.8%. Arm experienced a maximum intraday drop of 7.79% and closed down 6.67%.
On the news front, according to foreign media reports, Arm has issued a mandatory notice to its long-term partner Qualcomm 60 days in advance to cancel Qualcomm's architecture license agreement. If a solution cannot be reached after the expiration, Qualcomm may not be able to use Arm's instruction set for chip design.
In response to this, Qualcomm stated, "This is Arm's consistent practice - more baseless threats aimed at forcefully oppressing long-term partners, interfering with our performance leading CPU products, and ignoring the broad rights already covered by the architecture license agreements of both parties to increase license rates. We are confident that the rights covered by the Qualcomm Arm agreement will be confirmed by the court, and Arm's anti competitive behavior will not be tolerated However, Arm stated that they will not comment.
Previously, Qualcomm had been considering abandoning the use of Arm's original design and instead opting for its own original design. Qualcomm jointly established the RISC-V software ecosystem plan with companies such as Google, Intel, Nvidia, and Samsung in September last year, and also released the first RISC-V Android SoC chip for the mass market in October last year.
Qualcomm announced at an event held in Hawaii on Monday that the latest version of the Snapdragon series will include its self-developed Oryon processor design. According to Gao, this chip will be 45% faster and consume less energy than the previous generation.