Qualcomm's shares decline 4.5% following news of Arm's potential to abandon a crucial license in an intensifying conflict.

Qualcomm's shares decline 4.5% following news of Arm's potential to abandon a crucial license in an intensifying conflict.
Qualcomm's shares decline 4.5% following news of Arm's potential to abandon a crucial license in an intensifying conflict.
  • After Bloomberg reported that British chip designer Arm is considering ending a crucial license agreement with Qualcomm, the company's shares dropped by up to 5% in pre-market trading.

Nearly 5% of shares fell in premarket trade after Bloomberg reported that British chip designer is considering ending a crucial license agreement with a U.S. company.

Qualcomm has been given a 60-day notice of the cancellation of their architectural license agreement by Arm, according to a report by Bloomberg, which cited a document.

The license in question allows Qualcomm to design chips based on Arm architecture.

Arm operates by effectively licensing blueprints that other companies use to design semiconductors.

Qualcomm has been contacted by CNBC regarding the report. Arm chose not to respond.

This is a breaking news story. Please check back for more.

by Arjun Kharpal

Technology