It has come to light that Arm recently issued Qualcomm a standard 60-day notice with the intention of canceling their existing license agreement. This development indicates a strain between a pivotal IP provider and a leading mobile chipset manufacturer. Should the license agreement indeed be terminated, it poses significant risks for both parties and could potentially disrupt smartphone and PC manufacturers globally.
As reported by TrendForce, an insider remarked that Arm's strategy resembles "promoting peace through conflict" and suggests that a settlement with Qualcomm is likely. Ultimately, the goal is to continue securing a share of the revenue generated from Snapdragon chip sales. As it stands, Arm architecture, particularly in AI PCs, is still emerging. Currently, Qualcomm is at the forefront of promoting Windows on Arm products, which means that Arm needs Qualcomm to increase its licensing revenues. In this scenario, MediaTek could emerge as the primary beneficiary, as brand manufacturers are inclined to choose suppliers not embroiled in litigation, coupled with MediaTek's more appealing pricing.
Previously, NVIDIA announced its collaboration with MediaTek to develop Arm processors for client PCs. Their initial product is set to leverage TSMC's 3nm process and CoWoS packaging to compete with Qualcomm's Snapdragon X series. The new chip is anticipated to be trialed this month and mass production is slated for the second half of next year, alongside NVIDIA's GPUs. Some investors are optimistic that MediaTek's forthcoming Windows on Arm solution will bolster its partnerships with brand manufacturers.
MediaTek has also unveiled the Dimensity 9400, offering an improved price-to-performance ratio over Qualcomm's Snapdragon 8 Supreme. The Dimensity 9400 is rumored to be priced around $155, roughly 20% more than the Dimensity 9300. Conversely, Qualcomm's Snapdragon 8 Supreme Edition, utilizing the same TSMC N3E process, has a higher price tag of at least $180, representing a 15% increase over its predecessor.
