Arm Holdings (NASDAQ:ARM) stock increased 2% on Wednesday following a Reuters report that Qualcomm (NASDAQ:QCOM) is now using Arm’s latest computing architecture for its flagship processors. The move could boost Arm’s licensing revenue as the semiconductor market grows more competitive.
Sources familiar with the situation said Qualcomm has transitioned to Arm’s ninth-generation architecture, known as “v9,” for its newest PC and smartphone chips. The updated architecture offers multiple enhancements aimed at improving artificial intelligence performance for applications such as chatbots and image-generation tools.
This transition marks an important milestone in the partnership between Arm and Qualcomm after last year’s legal dispute. By adopting Arm’s advanced architecture, Qualcomm is expected to increase the licensing fees paid to Arm, given the higher cost associated with the latest technology.
Qualcomm declined to confirm the specific technology used in its newest chips, but the company stated: “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.”
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