Qualcomm and Arm Face Off in Delaware Trial Over Royalty Disputes

Qualcomm and Arm Holdings have begun a five-day federal jury and bench trial in Delaware, centering on withheld chip testing tools, leaked termination threats, and billions of dollars in potential royalty damages.

The ongoing dispute highlights tensions between the two semiconductor giants over licensing terms and architectural pricing structures. The legal proceedings before U.S. District Judge Maryellen Noreika could affect how mobile processors are licensed across the industry.

“Delay is costly,” said Karen Dunn, an attorney representing Qualcomm, during her opening statement in the courtroom.

Core Legal Claims and Royalty Dispute

The trial in the U.S. District Court for the District of Delaware stems from Qualcomm's allegations that Arm breached their contractual agreement by withholding essential chip testing tools. Qualcomm is seeking to halt royalty payments to Arm for up to five years, a relief package potentially worth billions.

According to court filings and testimony, the dispute intensified when Arm issued a 2024 contract termination threat that Qualcomm argues was improperly leaked, harming negotiations for a major chip deal with Meta Platforms. Judge Noreika is weighing whether to remove a five-year royalty hold provision from the contract, a ruling that could limit Qualcomm's potential financial recovery.

Architecture Pricing and Counter-Claims

During the bench trial portion, Qualcomm CEO Cristiano Amon testified as part of the proceedings. Qualcomm's legal team presented a chart indicating that Arm sought an 18,500% increase in royalty payments between version 9 and version 10 of its core computing architecture.

Arm, which is owned by SoftBank Group, denied breaching the contract. Attorneys for Arm argued that the company's actions did not disrupt Qualcomm's business arrangements.

“They were not harmed in the least,” said Gregg LoCascio, an attorney for Arm, addressing the jury regarding the disputed Meta deal adjustments.

In addition to defending against Qualcomm's claims, Arm filed counter-arguments alleging that Qualcomm leaked confidential details regarding antitrust investigations into Arm's business practices.

Market Performance and Financial Standing

These legal developments occur alongside public market valuations for the chipmakers. As of October 9, 2026, Qualcomm Inc (QCOM) shares closed at $175.50, declining 0.29%, according to Finnhub market data.

Broader Stakes for the Semiconductor Sector

The outcome of the Delaware trial carries consequences for mobile chip design licensing. Because Arm provides the foundational architecture utilized by major semiconductor manufacturers, any judicial ruling altering royalty structures or enforcing strict testing tool access requirements will influence future licensing negotiations across the mobile and computing ecosystem.