A smartphone with a Qualcomm logo is placed on a computer motherboard in this illustration taken on March 6, 2023.
Dado Ruvic | Reuters
Qualcomm shares fell nearly 5% in premarket trade after Bloomberg reported that British chip designer Arm is looking to scrap a key license for the U.S. firm.
Arm has given Qualcomm a 60-day notice of the cancellation of their so-called architectural license agreement, Bloomberg reported, citing 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.
CNBC has reached out to Qualcomm regarding the report. Arm declined to comment.
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