Arm Holdings ($ARM) is canceling a crucial license that has allowed Qualcomm ($QCOM) to use Arm’s intellectual property to design its chips,

Update: Adds Qualcomm stock move in premarket trade.  Arm Holdings (NASDAQ:ARM) is scrapping an architectural license deal that allows Qualcomm (NASDAQ:QCOM) to use its intellectual property to design chips,

Qualcomm Inc. (NASDAQ:QCOM) has been threatened by Arm Holdings Plc. (NASDAQ:ARM) with cancelation of its chip design license, leaving the San Diego-based semiconductor giant with 60 days notice. What Happened: The architectural license agreement allows Qualcomm to make its chips based on Arm’s standards.