Qualcomm loses its antitrust battle with China, will fork over nearly $1 billion

By Williams Pelegrin February 10, 2015

Qualcomm-Snapdragon-phone — Image used with permission by copyright holder

In its desire to prop up its own state-run companies, such as Semiconductor Manufacturing International Corp. and Spreadtrum Communications, China launched antitrust claims against mobile chipmaker Qualcomm. According to a report by Reuters, the fruits of China’s labor have grown as both parties reached a settlement worth just under $1 billion.

According to the report, China launched an antitrust investigation into Qualcomm, after the country accused the chipmaker of practicing anti-competitive licensing. The investigation, which went on for 14 months, intensified in recent weeks. This led senior executives at Qualcomm and National Development and Reform Commission (NDRC) to hold talks of a possible settlement.

Recommended Videos

The $975 million settlement could also include Qualcomm issuing a 33 percent discount on its royalty fees, which are used on patents in China. In addition to the lowered royalty fees, which could be announced as soon as Monday, Qualcomm will also change its licensing practices. This stipulation could prove to be the most detrimental to the company’s fortunes, as about half its global revenue of $26.5 billion was from China alone.

Qualcomm’s $975 million fine is the largest paid by any company in China. This is not good news for a company already dealing with rumored trouble with its Snapdragon 810 processor.

Topics

Qualcomm

Williams Pelegrin

Former Digital Trends Contributor

Williams is an avid New York Yankees fan, speaks Spanish, resides in Colorado, and has an affinity for Frosted Flakes. Send…

Mobile

Google chooses Samsung over Qualcomm to make the Pixel 6 5G modem

Google Pixel 6 colors.

Google has reportedly chosen Samsung over Qualcomm to build the 5G modem for the Pixel 6 and Pixel 6 Pro. The story broke early on Wednesday via Stephen Nellis and Paresh Dave of Reuters, who cited "sources familiar with the matter."

This is good news for Samsung, but bad news for Qualcomm, which created both the processors and modems that were used in earlier models of the Pixel smartphone. While Qualcomm will continue to supply chips for the Pixel 5a, Google's next-generation smartphones will instead run off Google's Tensor chipset, which is built in-house, and Samsung's 5G modem.

Computing

Qualcomm says it’s ready to compete with Apple’s M1 chips

A Snapdragon 7C processor held between fingers.

Qualcomm, best known for designing chips inside many Android devices, is setting its sights on a different market: Laptops. In his first interview since becoming president and CEO of Qualcomm, Cristiano Amon says he believes that Qualcomm can have the best laptop chip on the market. And there's no one better to design that chip than a team of architects who have worked on chips at Apple.

A new interview from Reuters shows a confidant Qualcomm looking to expand its business. Although Qualcomm creates the chips that power many Android handsets, the company used to license the core blueprint from chip designer ARM. Now, the company designs its own mobile cores. It's also investing in its own laptop designs thanks to a $1.4 billion acquisition of startup Nuvia.

Mobile

Apple continues breakup with China as supplier plans $1 billion India investment

How to track your sleep with an iPhone.

Apple's determination to move production away from China continues as Taiwan-based supplier Foxconn is reportedly planning a significant investment in an iPhone assembly factory in southern India.

The investment is said to be worth up to $1 billion, Reuters reported, citing two unnamed sources with knowledge of the matter. It is part of Apple's shifting of production from China to other countries, due to the trade tension between Washington, D.C., and Beijing, and the COVID-19 pandemic.