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.

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• [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)

According to a report from Wccftech, Google is rumored to switch to TSMC’s second-generation 3nm process, “N3E”, for its Tensor G5. The report also claims that for the Tensor G6, Google will utilize TSMC’s “N3P” process instead of the 2nm process speculated earlier. Its entire Pixel 10 series set to be launched next year will use TSMC’s 3nm process.

The report suggests that the Tensor G4 processor may be the last Google chipset manufactured by Samsung using its 4nm process, since the Tensor G4 reportedly offers only a slight upgrade compared to the Tensor G3 in the Pixel 8 smartphone, as it continues to use Samsung’s older FO-PLP packaging technology instead of the newer FO-WLP packaging, which is more capable in preventing overheating.

Notably, the report states that Qualcomm and MediaTek have also adopted the 3nm “N3E” process for their Snapdragon 8 Elite and Dimensity 9400 chipsets for the first time this year, having bridged the technological gap with Apple.

Therefore, the report notes that Google will still be a year behind in the competition when it announces the Tensor G5 and Tensor G6, since Qualcomm, MediaTek, and Apple are already using TSMC’s 3nm process and are expected to shift to N3P.

According to the report, the Tensor G5 was reported to have reached the tape-out stage earlier this year and is expected to use TSMC’s InFO-POP packaging, which allows the chipset’s packaging to be smaller and also more power efficient.

Regarding Tensor G6, it will likely launch two years from now. Although it was previously rumored that Tensor G6 will use TSMC’s 2nm process, the report indicates that it will instead utilize TSMC’s enhanced version of 3nm, N3P node.

According to a report from AnandTech, as a more enhanced process node compared to N3E, N3P offers better performance with higher transistor density and reduced power consumption.

The report indicates that it makes sense that Google is not opting to adopt the 2nm process immediately, especially since even Apple is expected to wait until the launch of the iPhone 18, two years from now, to introduce its first A-series chipsets that will exceed the 3nm barrier. Additionally, it is expected that the 2nm A-series chipsets will not be included in all iPhone 18 models due to their high cost.

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• [News] TSMC Rumored to Secure Tensor G6 Orders from Google with Its 2nm Process
• [News] Google’s Tensor G5 Reportedly Manufactured with TSMC’s 3nm and InFO-POP Packaging

(Photo credit: Google)

The Bank of Canada announced a 50 basis point rate cut to 3.75% on October 23, in line with market expectations, marking the largest rate reduction since the onset of the COVID-19 pandemic in March 2020.

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Bank of Canada Governor Tiff Macklem stated that price pressures are no longer broad-based, and the central bank’s focus is now on maintaining stability. While consumer and business investment spending has picked up, overall economic activity remains weak. Though this may help ease price pressures, with inflation now within the target range, the bank is keen to see stronger economic growth moving forward.

Tiff  Macklem further noted that if the economy performs as expected, the Bank of Canada will continue to lower rates to keep inflation on target and support demand. However, the timing and pace of future rate cuts will depend on incomming information, and adjustments will be made incrementally.

Looking ahead, the central bank forecasts that economic growth will gradually recover to around 2% by 2025, with further growth to approximately 2.5% in 2026. This is primarily driven by stronger consumer and business investment in a lower interest rate environment. The Bank of Canada also expects residential investment to rebound as housing demand increases, while exports should rise on the back of robust U.S. demand.

On inflation, the central bank anticipates some fluctuations in the coming months but expects it to remain within the target range as upward pressures on housing and service prices ease. However, if consumer and business spending grows more slowly than expected, inflation may still face some downside risks.

(Source: Bank of Canada, TrendForce)

According to a report from the Reuters, NVIDIA CEO Jensen Huang stated that the design flaw in the Blackwell GPU was entirely NVIDIA’s fault, dispelling rumors that TSMC was to blame. Huang emphasized that TSMC help fix the problem and resume the manufacturing “at an incredible pace.”

When initial reports of the design flaw emerged, some media outlets suggested that TSMC was at fault, speculating that this could strain the decades-long partnership between NVIDIA and TSMC. According to the Reuters, Huang referred to the reported tensions with TSMC as “fake news.”

A report from Tom’s Hardware indicated that the now-fixed Blackwell GPUs designed for AI and supercomputers are set to enter mass production in late October and are expected to begin shipping early next year.

Aside from addressing the design flaw in Blackwell AI chips, Huang also commented on the state of AI in Europe. According to another report from the Reuters, Huang stated that the EU is currently falling behind the U.S. and China in terms of AI investment.

The report from the Reuters mentioned that the EU has implemented the world’s first comprehensive regulations governing AI, which took effect in August. However, there are relatively few AI companies in the EU. Huang emphasized that the EU should accelerate its advancements in AI, noting that lots of countries are beginning to recognize data as a national resource.

Huang was in Denmark to launch a new supercomputer jointly developed by NVIDIA, the Novo Nordisk Foundation, and Denmark’s Export and Investment Fund. The supercomputer, named Gefion, is equipped with 1,528 GPUs and will be used for drug discovery, disease diagnosis, treatment, and addressing complex life science challenges, as reported by the Reuters.

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• [News] NVIDIA Reportedly in Talk with Samsung for Potential GPU Orders amid Rumored Tensions with TSMC
• [News] NVIDIA’s Blackwell Overcomes Delays, as GB200 Reportedly Sets for December Mass Production

(Photo credit: NVIDIA)

U.S. existing home sales in September fell by 1% month-on-month and 3.5% year-on-year to 3.84 million units, near a 14-year low, according to data released by the National Association of Realtors (NAR).

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The existing home inventory increased by 1.5% in September to 1.39 million units, representing a 23% rise compared to last year’s 1.13 million units. The months of supply climbed to 4.3 months, up 0.1 from August.

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The median price for existing homes was $404,500 in September, up 3.0% year-on-year and a slight 0.5% increase from the previous period.

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“factors usually associated with higher home sales are developing,” said NAR Chief Economist Lawrence Yun. “There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy. Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election.”

High Interest Rates Continue to Restrain Real Estate Market Activity…

In the past two years, annualized existing home sales have typically ranged from 4 million to 4.5 million units. One major reason is that many homeowners are unwilling to sell properties they bought at lower interest rates during the pandemic.

While the Federal Reserve cut interest rates by 50 basis points in September due to concerns over the labor market, bringing mortgage rates down to a near two-year low, recent improvements in labor market data may lead the Fed to take a more gradual approach to future rate cuts. This may cause mortgage rates to increase again in October, which could further suppress existing home sales.

(Source: MCC, TrendForce)

Given the high home prices and limited supply, many prospective buyers are likely to wait for further rate decreases, indicating that the existing home sales market could remain sluggish for some time.