Qualcomm has shifted its flagship chips to the latest generation of Arm Holdings’ computing architecture, with new features aimed at better AI performance, sources familiar with the matter told Reuters — a decision that could not only help Qualcomm compete more effectively with MediaTek and Apple but also give a revenue lift to Arm.
The move addresses lingering questions about whether and how Qualcomm will continue working with Arm following last year’s acrimonious legal dispute, during which Arm had at one point threatened to revoke a critical license. Qualcomm is signaling that it sees value in continuing the partnership by adopting the ninth version of Arm’s computing architecture — known in the industry as “v9” — even as legal tensions remain unresolved.
Shares of Arm jumped 5% during the regular session after news of Qualcomm’s adoption was published. Investors viewed the development as a sign that Arm, now publicly traded, can still rely on major chipmakers to integrate its designs despite growing competition from alternatives like RISC-V.
San Diego-based Qualcomm last week unveiled a new generation of PC and phone chips, and unlike previous iterations, its new processors will be built on the v9 instruction set. The update is designed to help chips handle more complex workloads such as generative AI, image generation, and chatbots — areas seen as central to the next wave of semiconductor demand.
Qualcomm rivals have already staked their positions. Taiwan’s MediaTek, which has at times surpassed Qualcomm’s market share in mobile processors, has publicly confirmed its use of v9. Analysts widely believe Apple is already deploying the architecture in its own chip designs. Qualcomm’s decision, therefore, aligns it with competitors already leveraging v9, avoiding the risk of being perceived as lagging behind in next-gen AI performance.
Asked about its choice of technology, Qualcomm declined to confirm specifics, saying instead in a statement: “We chose the instructions that make sense for our customers. That’s the beauty of having our own CPU design team — we can pick and choose the instructions that add value.”
For investors, the shift highlights an important divergence in strategies across the semiconductor industry. While RISC-V has gained attention as a free, open-source chip standard, it lacks the maturity and developer ecosystem of Arm’s architecture. Qualcomm could have chosen to extend use of its prior Arm generation, as it did with its chips announced last year, or leaned more aggressively toward open standards. Qualcomm appears to be balancing the need for cutting-edge AI performance with the relative stability of Arm’s established ecosystem by opting for v9.
Jay Goldberg, senior analyst for semiconductors and electronics at Seaport Research Partners, said the financial impact for Arm is difficult to quantify since Qualcomm licenses Arm’s computing architecture but designs much of its chip in-house. Still, he said the decision is strategically significant given the recent disputes.
“That’s very positive for Arm,” Goldberg said. “These are companies that were fighting each other. Qualcomm could have gone a very different path here.”
The adoption is believed to underline Qualcomm’s determination to keep pace in the AI-driven semiconductor race, where Apple and MediaTek have already made headway. For Arm, the win strengthens its case to shareholders that even amid legal frictions and emerging rivals, its core technology remains indispensable to industry leaders.
