Recently, Qualcomm made a series of commitments, the European Commission formally approved the acquisition of NXP Semiconductor Qualcomm transactions, thus Qualcomm proposed in October 2016 to acquire NXP Semiconductors for 38 billion US dollars of the transaction, has been around the world It has been approved by market regulators in eight countries, including the United States, Russia, the European Union, South Korea and Japan, etc. At present, only the Chinese government regulators have not yet made a decision and it is based on this that the transaction once again triggered the industry Concern, and the focus of attention is naturally related to the Chinese government should release?
As we all know, the United States and the EU, especially the EU, have extremely strict antitrust standards and clauses even in nearly nearly demanding countries and regions, but the two measure very different monopolys.For example, in the United States antitrust law, the efficiency standard Is the most important criterion, if the behavior of an enterprise undermines the efficiency and lowers the welfare of consumers, then this behavior may be suspected or constitute a monopoly.In Europe, in addition to efficiency considerations, the factors of the competition itself is also very Importantly, if the behavior of the enterprise interferes with the order of competition, even if it can promote economic efficiency and promote the improvement of consumer welfare, it will also be considered suspect or form a monopoly. But precisely because of this difference in complementarity, the basic consideration is given to Industry and users of the two most important stakeholders, with a fairly representative, and the acquisition of NXP Qualcomm transactions in the United States and the European Union approved at least prove that the transaction whether from consumers (users), or Competition (industry and related businesses) point of view will not constitute a monopoly, and this is why the industry most optimistic about the transaction China can smoothly through the final external causes.
What needs to be explained is that due to the differences among countries and regions, the definition and criteria of monopoly will be different, but the so-called ever-changing .Fundership (interest) and competition (whether to promote industrial development and fair Competition) should always be fundamental.
Specific to China, mentioning Qualcomm's acquisition of NXP, in view of another fierce fighting for Broadcom Qualcomm's malicious mergers and acquisitions, Qualcomm's smooth acquisition of NXP has become both sides wrestling, especially the Qualcomm block Broadcom malicious merger important bargaining chip. What is it?
According to previous reports, due to their own enterprises for innovation and future development of the industry forward-looking judgments and understanding there is a huge difference, Broadcom think NXP itself is not significant, so out of the overall cost of acquisition Qualcomm considerations, Broadcom has been behind the scenes Trying its best to prevent Qualcomm from acquiring NXP. On the contrary, NXP can not only effectively complement its existing business, but also represent the industry's future development trend and is in line with Qualcomm's continuous innovation and forward-looking layout for the future business model.
It is based on this understanding, judgments and ability differences, Qualcomm if successful smooth acquisition of NXP will undoubtedly weaken Broadcom M & A their own determination and ability, while substantive use of NXP's value of mergers and acquisitions to raise quotes to improve Broadcom The threshold of mergers and acquisitions.Thus, the so-called Qualcomm mergers and acquisitions behind NXP to some extent, the consequences of Broadcom malicious mergers and acquisitions.
When it comes to Broadcom malicious mergers and acquisitions, I believe the industry already know the major domestic enterprises standpoint that Lenovo, OPPO, vivo, millet and other representatives of China's mobile phone manufacturers openly agreed that Broadcom M & A Qualcomm not only detrimental to the current continuation of the smart phone Innovation and development will also make Chinese mobile phone enterprises more disadvantaged in competition with enterprises such as Apple and Samsung which are still in the forefront of the global smart phone industry.
Because they saw that in recent years Broadcom's business model has been basically based on a company that operates mainly in capital and management, and mainly faces and prioritizes large enterprises such as Apple and Samsung (because they can get immediate maximum benefit ), While Chinese companies are not within the scope of the priority of cooperation, which also determines Broadcom is basically rigidly adhere to the mature technology and short-term interests.In contrast, Qualcomm has been adhering to the open model of business cooperation, especially for China's cooperative enterprises, and invest heavily in cutting-edge research and development of basic science and technology, and this is precisely related to the Chinese enterprises in the current smart phone industry to achieve the ultimate overtaking corners, and even in the upcoming 5G, IoT industry competition to take the first mover advantage Necessary
If the above is the industry and manufacturers for the recognition of the value of Qualcomm business model and Qualcomm for Broadcom malicious mergers and acquisitions will dominate the business model concerns, then last November Xiaomi Communication Technology Co., Ltd. (Xiaomi), Guangdong Opal Mobile Communications Co., Ltd. (OPPO), Vivo and Qualcomm signed a memorandum of understanding on chip purchases respectively. The three companies said they intend to purchase Qualcomm components worth no less than $ 12 billion over the next three years, and this The signing of the memorandum of understanding at the signing ceremony held in the Great Hall of the People also indirectly revealed that in addition to the industrial circle, the Chinese government has expressed its concern over the mode of win-win cooperation promoted by China's industry by Qualcomm and the competition brought by Qualcomm to related industries and enterprises in China Advantages and upgrades are also recognized.
It is worth noting that Qualcomm in recent years has begun to expand the business model enabling China's mobile industry to more areas such as the semiconductor and the Internet of Things to help China's industrial upgrading with its core strengths such as the support of Qualcomm 28nm process technology to achieve the first production, and then announced the realization of 14nm wafer bump mass production.For another example, Qualcomm investment in China Corecom company at the same time, continue to provide design and technical support to help Hua Xin Tong Qualcomm companies use the industry leader ARM architecture server chip technology, is committed to developing a suitable for the Chinese market of domestic server chips and Intel compete and contend.In the field of Internet of things, last October 10, Chongqing Yubei District People's Government, Qualcomm and China Branch Creative reached hands in establishing the Qualcomm Smart Car Alliance Collaborative Innovation Laboratory to promote the smart car networking industry to upgrade and develop and help accelerate the development and innovation of China Smart Car Alliance and establish an open Innovative development platform.
From this point of view, Qualcomm's acquisition of NXP for China, the immediate priority and the real strategy is to stop Broadcom's malicious acquisition of Qualcomm to allow Qualcomm and China's handset makers, mobile ecology and the wider IOT ecosystem close cooperation mode to continue, Even using Qualcomm in 5G, Internet of Things basic research and development advantages, to establish their own global advantages in the 5G ecosystem and the right to speak in order to achieve catch-up.
However, for Qualcomm's acquisition of NXP also expressed concern in the industry, such concerns mainly focused on the merger once completed, Qualcomm and NXP combination may hinder the innovation and development of China's chip industry.In fact, we look at the high-pass In order to survive and develop innovative cooperative mode of energy generation, especially in China, this mode of enabling originated in the mobile industry has been proven successful in the market and recognized by cooperative enterprises, and has now entered the field of semiconductor and Internet of Things. Therefore, we think that such worries are unfounded and even suspicious of trade protectionism.
The fact is that the course of 40 years of reform and opening up and its achievements prove that our country is the biggest beneficiary of globalization and investment liberalization and is replacing the western countries as the standard-bearer of globalization and trade and investment liberalization. In the future, as always, China will adhere to open cooperation In contrast, narrow protectionism, while taking care of the temporary short-term interests of individual enterprises, will seriously result in the loss of 'sunshine and air' for the industries that are protected and closed in the greenhouse, and ultimately their own industrial competitiveness reduce.
In fact, in his speech on trade protectionism and "doing a good job of the current economic work around the implementation of the spirit of the Fifth Plenary Session of the 18th CPC Central Committee," he pointed out: 'Opening to the outside world is our basic state policy. We should not only insist on but also better Persist in. What I am talking about here is a major principle. Some departments may have reasonable ideas but they must all be reasonable, but they must obey the principle. To innovate and improve the utilization of foreign investment environment, attach great importance to the protection of the legitimate rights and interests of foreign-funded enterprises, attach great importance to the protection of knowledge Property rights, domestic and foreign-funded enterprises should be treated equally, fair treatment, and strive to maintain our use of foreign capital in the world's leading position '.
In summary, we believe that Qualcomm's acquisition of NXP has been ratified globally one after another, proving that the trend of global economic integration and globalization has become overwhelming and all parties involved can only adhere to the mentality of innovation, opening up and cooperation and win-win cooperation Among them, while China can only benefit itself, it will also promote the continuous upgrading and development of its industries. As one of the biggest beneficiaries of globalization and investment liberalization and the future carrying flag of China, it is not necessary to be involved in any dispute Natural choice.