Qualcomm (QCOM) estimated annual savings of up to $1.4 billion on payments to Arm Holdings (ARM) by buying the chip startup Nuvia in 2021, Reuters reported Wednesday, citing internal Qualcomm documents and evidence presented at a trial in Delaware federal court.
The estimate came up while Qualcomm Chief Executive Cristiano Amon was testifying to a jury about the company's rationale for its $1.4 billion Nuvia acquisition, the report said.
Amon said the potential savings on royalty payments to Arm justified the acquisition, according to Reuters.
The CEO's testimony was part of a trial to resolve claims that since Arm didn't consent to the transfer of Nuvia's license deals, it can force Qualcomm to destroy the technology acquired in the buyout, the report said.
Qualcomm and Arm didn't immediately respond to requests for comment from MT Newswires.
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