Qualcomm CEO Cristiano Amon told a jury that purchasing Nuvia for $1.4 billion in 2021 was justified by potential annual savings of up to $1.4 billion on royalty payments to Arm.
The chipmaker is facing claims that Arm demanded Qualcomm destroy Nuvia technology developed with it, as Arm never consented to the transfer of license agreements.
Arm’s biggest customer has used acquired Nuvia tech to push into the PC market, aiming to help Microsoft regain market share lost to Apple.
Qualcomm’s relations with Arm began to deteriorate in the 2010s, when Qualcomm stopped designing its own computing cores and relied on designs from Arm. However, after discovering a startup founded by ex-Apple engineers, Amon saw an opportunity to develop Nuvia-based chips.
The acquisition allowed Qualcomm to save money by switching away from Arm’s technology, with analysts estimating the company currently pays Arm about $300 million per year.
Source: https://www.reuters.com/legal/qualcomm-saw-nuvia-buy-chance-save-14-billion-year-arm-fees-ceo-tells-jury-2024-12-18