Qualcomm Inc.’s chief executive officer told a jury that its business suffered when customers were misled by computer-chip designer Arm Holdings Plc about the companies’ licensing agreement for chip technology vital to the electronics ecosystem.

Internal Qualcomm documents showed the chip firm estimated it could eventually save as much as $1.4 billion a year on payments to Arm , by purchasing a little-known startup in 2021, according to evidence shown at a trial on Wednesday.

In 2022, Arm ignited a legal battle after Qualcomm continued to pay its existing royalty fees to Arm, which were allegedly much lower than what Nuvia was paying. After the two failed to come to an agreement, Arm argued the designs licensed to Nuvia were no longer valid, and that Qualcomm should destroy the technology created with them.