Qualcomm Adopts Arm’s Latest v9 Tech to Boost AI Chip Performance and Stay Competitive

Prime Highlight:

Qualcomm has shifted its flagship PC and smartphone chips to Arm’s latest v9 architecture, aimed at enhancing AI-driven performance.
The move underscores Qualcomm’s commitment to keeping pace with rivals Apple and MediaTekin the AI chip race.

Key Facts:

ARM’s shares rose 5%after news of Qualcomm’s adoption, as the v9 instruction set carries higher licensing fees.
While RISC-V is emerging as competition, analysts note it remains less developed compared to ARM’s dominant ecosystem.

Background

Qualcomm has shifted its newest flagship chips to Arm Holdings’ latest computing architecture, known as “v9,” in a move aimed at strengthening AI performance and keeping pace with competitors Apple and MediaTek.

The shift, confirmed by sources familiar with the matter, marks a significant step for Qualcomm after a tense legal dispute with Arm last year. Arm had previously threatened to revoke a key license but later withdrew the move. The decision is expected to raise Arm’s revenue since the newer instruction set is priced higher. Following the report, Arm’s shares climbed 5% in trading.

Qualcomm’s new PC and smartphone chips, revealed last week, will now rely on the v9 architecture, which is designed to improve performance on AI-heavy tasks such as chatbots and image generation. Rival MediaTek has already confirmed its adoption of v9, and most analysts believe Apple also uses the same architecture.

Qualcomm declined to confirm details but said in a statement it chooses the instructions that best fit its customers, adding that having its own CPU design team gives flexibility to adopt only the features that add value.

While Arm continues to dominate, it faces competition from RISC-V, an open-source chip standard. However, analysts note that RISC-V remains less mature and lacks the developer base that Arm commands.

“This decision is a strong positive for Arm,” stated Jay Goldberg from Seaport Research Partners. “Qualcomm had other options, but ultimately decided to continue its journey with Arm.”