Qualcomm Adopts Arm’s Latest Chip Architecture to Boost AI Performance

Qualcomm has shifted its flagship chips to Arm Holdings’ newest computing architecture, aiming to enhance artificial intelligence performance. The move is expected to strengthen Qualcomm’s competitiveness against MediaTek and Apple while boosting Arm’s revenues.

Qualcomm Embraces Arm’s v9 Architecture

The San Diego-based company recently introduced a new generation of chips for PCs and smartphones. According to sources, these chips are built on Arm’s ninth-generation architecture, known in the industry as “v9.” This version includes upgrades designed to handle AI tasks more efficiently, including chatbots and image generators.

Unlike previous models, which used older technology, Qualcomm’s decision signals a firm commitment to the latest Arm standard. The adoption partially resolves uncertainty over whether the company would continue working with Arm after last year’s legal dispute.

Competitive Landscape in Chip Development

Rivals such as MediaTek have already confirmed the use of Arm’s v9 architecture, and analysts believe Apple also relies on it. This technology, known as an instruction set architecture, defines which applications can run on a CPU, making it a critical factor in chip performance.

Qualcomm declined to confirm the exact architecture used in its latest chips. However, it stated that its in-house CPU design team selects the instructions that best suit customer needs, emphasising flexibility in development.

Although Arm faces competition from alternatives like RISC-V, the open-source standard remains less mature and lacks Arm’s established developer ecosystem. Qualcomm could have continued with older Arm versions, as it did last year, but instead chose to align with the new standard.

Implications for Arm and the Industry

Industry experts suggest Qualcomm’s decision may increase Arm’s licensing revenue, though the exact financial impact is difficult to predict. Qualcomm designs much of its chip technology independently, meaning it pays Arm mainly for licensing the architecture rather than purchasing full designs.

Jay Goldberg, senior semiconductor analyst at Seaport Research Partners, noted the significance of this shift given the companies’ recent disputes. Less than a year ago, Arm had threatened to cancel a key licence agreement with Qualcomm before retracting the move.

“These are companies that were fighting each other,” Goldberg said. “Qualcomm could have gone a very different path here. That’s very positive for Arm.”

with inputs from Reuters