[News] Taiwanese Chipmaker MediaTek Likely to Benefit Most from Arm-Qualcomm Licensing Dispute

---

---

Following Qualcomm’s recent launch of Snapdragon 8 Elite, it was confronted by Arm Holdings to terminate its architectural license agreement with Qualcomm, which permitted the U.S. chip giant to use Arm’s intellectual property for chip design, according to Bloomberg. According to the reports by MoneyDJ and Commercial Times, Taiwan-based smartphone IC designer MediaTek may turn out to be the main beneficiary amid the dispute.

According to media reports, Arm has issued a mandatory 60-day notice to Qualcomm regarding the cancellation of the licensing agreement, which previously enabled the latter to develop its own chips based on Arm’s proprietary standards.

Citing sources familiar with the industry, the report by MoneyDJ notes that the move implies the strained relationship between a major IP supplier and a leading mobile chip firm. If the licensing agreement does break up, it would be detrimental to both parties. Therefore, Arm’s act seems rather to be a “push for peace through conflict,” the source observes.

According to sources cited by the Commercial Times, it is likely that the two parties would eventually reach a reconciliation, as Arm’s ultimate goal might be securing a share of the profits from the Snapdragon series chips. While the AI PC ecosystem led by Arm architecture is still in its nascent stage, the company can only garner more licensing fees if Qualcomm actively promotes its WoA (Windows on Arm) products, the report suggests.

According to Commercial Times, MediaTek will likely benefit as brand manufacturers prefer chip suppliers with no litigation concerns and who also offer competitive pricing.

MediaTek’s upcoming launch of a Windows on Arm (WoA) solution will further strengthen its collaboration between Arm and Taiwanese manufacturers, the report notes. A previous report by Wccftech notes that MediaTek has teamed up with NVIDIA to develop a custom chip to confront Qualcomm’s Snapdragon X Elite series, which will be manufactured using TSMC’s 3nm node, based on ARM architecture.

On the other hand, institutional investors cited by MoneyDJ also believe that the ongoing lawsuit between Arm and Qualcomm could benefit MediaTek, helping the Taiwanese chip giant further expand its market share in the flagship smartphone segment. It is also worth noting that MediaTek’s newly-launched Dimensity 9400 reportedly offers higher price-performance ratio compared to Qualcomm’s Snapdragon 8 Elite, according to MoneyDJ.

According to a report by Wccftech, MediaTek’s Dimensity 9400, built with TSMC’s N3E node, may be priced at around USD 155 per chipset, reportedly 20% higher than that of the Dimensity 9300. Also built with TSMC’s N3E node, Qualcomm’s Snapdragon 8 Elite is expected to be priced at around USD 180, with an ASP increase of about 15%, according to analyst Ming-Chi Kuo.

Read more

• [News] Arm Holdings Reportedly Cancels Qualcomm Chip Design License
  
• [News] Qualcomm Rumored to Decide Its Next Move Regarding Potential Intel Acquisition after US Election

(Photo credit: MediaTek)