A smartphone with the Qualcomm logo is placed on a computer motherboard in this illustration taken on March 6, 2023.
Dado Ruvic | Reuters
Qualcomm Shares fell nearly 5% in premarket trading Bloomberg reports that British chip designer Arm is seeking to eliminate key licenses for the American company.
Bloomberg reported, citing a document, that Arm gave Qualcomm 60 days’ notice to cancel its so-called architecture licensing agreement.
The license in question allows Qualcomm to design chips based on the Arm architecture.
Arm works by effectively licensing blueprints that other companies use to design semiconductors.
CNBC has reached out to Qualcomm about this report. Arm declined to comment.
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