Arm has sued Qualcomm and its subsidiary, Nuvia - which the company acquired last year in a $1.4bn (£1.2bn) deal - accusing both organisations of breach of licence agreements and trademark infringements.
If successful, the lawsuit could unwind one of Qualcomm's largest strategic moves of the last few years, in which the company aimed to broaden its portfolio beyond the smartphone sector and develop more powerful chips that could be used in laptops and servers for data centres.
The British company's complaint centres around Nuvia's use of Arm's licences, which the organisation argues can't be transferred over to Qualcomm without its permission. Moreover, Arm has also accused Qualcomm of continuing to use its CPU designs in its products after its licences expired in March 2022.
“Qualcomm has breached the terms of the Arm licence agreement by continuing development under the terminated licences," Arm said in a statement. "Arm was left...