If it says that Bo has spent more than $100 billion to buy a competitor, Qualcomm (QUALCOMM), it is not enough to describe the far-reaching together of the global semiconductor industry, but to watch the key battleground of the hundreds of billions of dollars in the acquisition and Qualcomm case, In fact, it is about how Bo will be to fix Qualcomm's current embattled patent licensing business model (authorized business units). Hock Tan, the message's chief executive, has thrown the wind away, deliberately abandoning the past ' high-pass tax ' approach, which will win back the support of key customers, including Apple, Samsung Electronics (Samsung Electronics), Huawei, etc. will also wipe out the future of the acquisition Qualcomm must pass through the regulatory agencies to examine obstacles. Hock Tan proposed to abolish the high-pass tax, the patent authorization in chip pricing according to San Diego Union-tribune, a report by Reuters and other media reports, and after exchanging views with the Bo Tong management team, including investors, Bernstein Research analyst Stacy Rasgon said he believes that CEO Hock Tan intends to repeal the previously Qualcomm licensing business model of patenting and chips as two different products, and, correspondingly, Tan's strategy will include patent licensing in chip pricing, So that the smartphone industry, including Apple, has to pay only once. Admittedly, this is bound to make Qualcomm's original authorized revenue greatly reduced, but Tan will also be with the first-line smartphone industry, such as large customers to sign a long-term chip supply contract, to make up for the shrinking revenue source, at the same time, the ever-vigorous hock tan will also come up with their own talents, The cost of cutting costs, such as executive and research fees, is estimated at $3 billion, to fill shortfalls in revenue. Over the past 10 years, with the explosion of smartphone sales around the world, Qualcomm's patent authority has been trading at nearly $8 billion a year, until regulators set off antitrust investigations and big client lawsuits in recent years. Some smartphone makers are annoyed by the practice of stripping a cow of a two-layer skin, and they are forced to pay a patent right out of the purchase chip. Apple, for example, stopped paying Qualcomm rights in early 2017 and filed a lawsuit against Qualcomm in January, arguing that its licensing business model violated patent law. At the same time, the global antitrust regulators also believe that Qualcomm's business model, suspected of using its dominant position, forcing smart-phone manufacturers to accept high patent licensing, otherwise afraid of losing Qualcomm chip supply. These licensing disputes from customers and regulators have led to a sharp contraction of Qualcomm's authorized revenue, which, according to the results, has left only $6.4 billion trillion in the fiscal year 2017, hitting more than 80 percent in a row, and a relative impact on Qualcomm's share price, making it an offer. Focus on the return of the big customer heart to the 5G era Cornerstone 2017 will enter the last one months, since the beginning of the year, with Apple and regulators such as South Korea and Taiwan, Qualcomm's attitude has not changed much since its unique licensing business model and the unfair competition controversy it has caused, They think Apple is only going to have a relatively low royalty rate, and the two sides have not yet agreed on the rates, but these events will only be short-lived, and once it's over, it's back on track. However, Hock Tan, who represents a desire to buy Qualcomm, wants to challenge the disruptive logic of high taxes, seemingly saying: Stop daydreaming, Qualcomm embraced the licensing business model has no longer back. Reuters spokesman said early in November that the company believes that global regulators should welcome the proposal to buy Qualcomm, after all, this is the solution to the high-pass tax problem; Hock Tan was more confident that the decision to make the offer was a matter of confidence that the big clients would embrace the proposal with both hands. Is Apple not one of the big clients of both Bo Tong and Qualcomm? Good relationship with Bo Tong, but now with Qualcomm? Hock Tan alluding to the big customers, is not the apple? Even if it is not, it can be speculated that if Hock Tan really succeeds in taking over Qualcomm and abolishing the high pass tax, the period of settlement between Apple and the court is not far away. Why is Bo Tong so eager to acquire Qualcomm? Admittedly, the success of the future acquisition and Qualcomm is not impossible, after all, Hock Tan has accumulated a series of successful complex purchase together: his Anhua in 2016 after the acquisition of the old Bo Tong, the wireless network business sold to Cypress; Although the Brocade case is still under review, Hock Tan has agreed to sell its ruckus wireless. Now, what is the most interesting business that Bo Tong is acquiring Qualcomm? Basically, it should be the smartphone processor and baseband processor chip business is definitely justified, in the global transition to the 5G network, Qualcomm is the first leading group, relatively, if Bo Tong failed to acquire Qualcomm success, the lack of honeycomb-type modem chip product series of Bo Tong, will be impacted in the 5G era. So it seems that Hock tan at this time to abolish the high pass tax practice, compared to the loss of revenue, if it can be replaced by Qualcomm 5G, what is it?
