Qualcomm and Arm have found themselves embroiled in a five-day jury trial at the U.S. District Court for the District of Delaware. Qualcomm has accused Arm of breaching their contract by failing to provide essential chip testing tools. Furthermore, Qualcomm alleges that Arm leaked a menacing letter threatening to terminate a vital licensing agreement in 2024—a move that Qualcomm claims has significantly hampered its chip cooperation negotiations with Meta.

In light of these allegations, Qualcomm is demanding that Arm halt the collection of licensing royalties, which could potentially run into billions of dollars, for a period of up to five years. Additionally, Qualcomm is insisting that Arm grant it a license for the V10 instruction set architecture. The lawsuit was originally filed by Qualcomm in April 2024, with subsequent amendments made to the complaint to incorporate additional allegations.

Arm has vehemently denied Qualcomm's accusations, asserting that Qualcomm is leveraging the lawsuit as a tactic to exert commercial pressure. Arm contends that the chip transactions in question are speculative in nature and have not resulted in substantial harm. Moreover, Arm accuses Qualcomm of disclosing non-public information, thereby disqualifying it from seeking any form of compensation.

It's worth noting that Qualcomm is one of Arm's key clients, accounting for 9% of Arm's total revenue in the fiscal year that concluded in March 2026. Arm has stated that it is unable to predict the potential impact of the lawsuit's outcome on their ongoing collaboration and associated revenues.