South Korea Probes ARM’s Licensing Practices Following Qualcomm Complaint
South Korean regulators are scrutinizing ARM Holdings' licensing framework after Qualcomm alleged restrictive practices. The Korea Fair Trade Commission's review could redefine collaboration dynamics in the semiconductor sector, where ARM's designs power 99% of smartphones globally.
Qualcomm's complaint centers on ARM's alleged departure from its historically open licensing model. The chipmaker contends new contractual terms may stifle innovation in mobile and edge computing hardware development. ARM shares fell 3% following the regulatory announcement.
The investigation coincides with heightened global scrutiny of foundational tech providers. Semiconductor supply chain participants face increasing regulatory attention as chip demand surges across AI, IoT, and automotive applications.
