Regardless of which of these two acquisitions become a reality, they will all reshape the global semiconductor industry pattern and will have a profound impact on the development of China's related industries. As a result, it has drawn wide attention from all parties.
Qualcomm China chairman Meng Pu told People's Daily reporter interviewed that Qualcomm in China more than 20 years of long-term development, with the Chinese mobile communications industry all the way to grow together in the completion of the acquisition of NXP, Qualcomm will adhere to the 'rooted in China, Share wisdom, achievements in innovation 'concept, covering areas such as Internet of things in the field of 5G, autonomous driving and other emerging industries to partners more opportunities.
Meng Pu said Qualcomm acquired NXP can be completed as soon as possible, help Qualcomm defense Broadcom's malicious mergers and acquisitions Qualcomm 'level-enabling' model is conducive to China's industry, maintaining an independent Qualcomm more in line with the development needs of Chinese enterprises.
The acquisition of NXP will enable more industries
Qualcomm proposed a $ 38 billion acquisition of NXP in October 2016. Almost a year later Broadcom announced the acquisition of Qualcomm for a total of $ 130 billion.
At present, Qualcomm successfully acquired NXP 's way of getting in the way and obtained 8 approvals including the United States, Russia, the EU, South Korea and other countries and regions on a global scale, only passing the approval of the Ministry of Commerce of the People's Republic of China Qualcomm's mergers and acquisitions were rejected, the two sides are still in the game process.
In the 5G era, ultra-high-bandwidth, low-latency networks will make things like Internet of Things (IoT), autonomous driving and more promising. Qualcomm is the world's largest supplier of wireless semiconductors with leading edge in 5G. The largest supplier of automotive chips, mobile payment chips and microcontrollers, has an absolute say in NFC technology in particular.
Meng Pu said Qualcomm and NXP's business almost no overlap, after the acquisition will significantly enhance Qualcomm in the Internet of things, automotive and other industries competitive strength.Meanwhile, Qualcomm's leading technology and concepts in the field of communications, but also be able to enter the traditional industries, Help these enterprises to develop better in the 5G era.
As a technology innovator, Qualcomm has long been a "enabler" in the mobile communications industry and Qualcomm has made related industries more "horizontal" through its "innovation-collaboration-sharing" model. , China's smart phone business collective rise, Qualcomm is a very important driving force.
Currently, Qualcomm has reached a patent licensing agreement with over 130 Chinese enterprises in China, ranging from 3G to 4G, from mobile phones, tablet PCs to modules, etc. Qualcomm has been providing advanced chip products to Chinese handset enterprises by investing in R & D and licensing advanced technologies And technical support can be said that the entire smart phone industry has a full set of Qualcomm's deep involvement in the work.The survey shows that half of the current global shipments of smart phones from Chinese manufacturers, while the top ten handset brands, seven are China Manufacturers.
It is precisely because of this, Qualcomm has been widely recognized and supported by China's smart phone business.In the recently held Qualcomm 2018 Qualcomm China Technology and Cooperation Summit, the Chinese mobile phone industry 'half of the country' gathered together OPPO, vivo, Lenovo, millet, etc. Collective companies even behind the high-pass, against Broadcom's acquisition of Qualcomm.
Meng Pu said that looking back over the past 20 years, Qualcomm and China's mobile phone manufacturers and even the entire industry chain closer and closer cooperation, the relationship is getting better and better.We hope in the 5G era, through the acquisition of NXP into the Internet of Things, Automotive Electronics In these emerging industries, we continue to exert our enabling and enabling role in the Chinese industry.
Independent development of Qualcomm more in line with China's industrial interests
While actively promoting the acquisition of NXP, Qualcomm itself is also facing the vicious acquisition of Broadcom by the test.Meng Pu stressed that if the acquisition of NXP can be completed as soon as possible, the Qualcomm defense Boton hostile takeover will play an important role.
Compared with the Qualcomm innovation-driven and industry-oriented development model, Broadcom is a company mainly engaged in capital operation and management, and its business mainly faces and prioritizes large customers. In recent years, with its continuous M & A, Broadcom company rapidly rise, the next acquisition target to Qualcomm.
Domestic relevant industry analysts pointed out that the past Burton acquisition history, the conventional operation is to focus on serving a few large customers and substantially increase the offer if the future of Qualcomm chips and baseband is no longer on the Chinese handset manufacturers to sell, or Reduce the priority of supply, then the Chinese mobile phone companies will be a huge blow.
Meng Park believes that if the entire industry eventually only go to the hands of a handful of companies, which for most of China's industries is not good. 'If the smart phone industry is gone, so few customers, profit control in several large In the hands of the company, China's semiconductor components sold to whom?
On the other hand, Qualcomm's acquisition of NXP, if successful, will undoubtedly prevent Qualcomm from defending Boton's hostile takeover and maintaining its independence at 5G and the Internet of Things era. "After the acquisition of NXP, Qualcomm will promote globalization and promote industrial standards Integration, so that many Chinese industries, companies can benefit from the global development, thanks to the 5G covered by the Internet of all opportunities brought together, "Meng Pu said.
Meng stressed that after the acquisition of NXP, Qualcomm promised not to change NXP's business model within 8 years; NXP's original technology and trademark authorization will not change within 8 years, in full accordance with the original mode of operation.At the same time, Qualcomm will not NXP's acquisition of the standard essential patents above the NFC standard, as well as some system patents, will be transferred to third-party companies, free of charge to the entire industry within three years.
Qualcomm more and more China
For Qualcomm, the MOFCOM approval of NXP's acquisition will determine the future direction of development, while the Chinese market has become the top priority for Qualcomm.
Data show that Qualcomm's chip business revenue from Chinese manufacturers in 2017 reached 6 billion US dollars, is expected to reach 8 billion US dollars by 2019, a compound annual growth rate of 17%. In the future, with the deepening of China's reform and opening up, the 5G market is vast The development prospects of Qualcomm will make Qualcomm the Chinese partners as 'the most viable partners, but also the most stable partners.'
Meng Pu said Qualcomm in the past so many years, especially the last two or three years, we have done in China investment and investment to help make progress in China's industry, the industry involved not only the smart phone industry, but also include a number of other industries, Such as the semiconductor industry.
Qualcomm has been cooperating with SMIC, the leading IC manufacturing company in China, for over 10 years. On June 23, 2015, Qualcomm and Semiconductor Manufacturing International Corp. (ICIC), Huawei Technologies and Belgium Microelectronics Research Center (imec) On August 10, 2015, SMIC announced Qualcomm Snapdragon 410 processor with 28nm process technology has been successfully applied to the development of China's most advanced integrated circuit research and development platform Mainstream smartphone, which is an important step toward commercialization of 28nm core chips.
In January 2016, Qualcomm and Guizhou Province announced that they will jointly establish Guizhou Huasun Tong Semiconductor Technology Co., Ltd. to design and sell advanced server chips based on the ARM architecture in China to expand the big data industry cluster. Such cooperation is unprecedented in the past.
In the area of 5G and IoT, Qualcomm opened its Global Innovation Center in Shenzhen in October 2016, the first of its kind in the United States beyond the United States and established the world's first wireless communications and Internet of Things 'Technology Showcase'.
In September 2017, Qualcomm Co-Innovation Center was established in Nanjing and Chongqing to accelerate the innovation of related enterprises in the field of intelligent terminals and IoT, focusing on the Internet of Things and the 5G direction, providing technical assessment for eligible twin startups and providing initial research and development guidance And system compatibility testing.
In October 2017, 'Qualcomm Alliance Automotive Synergy Innovation Laboratory' and 'Chongqing Economic Open Area, Qualcomm Intelligent Internet of Things Joint Innovation Center' was formally established.
'Our cooperation with the Chinese industry is very close. We will have long been rooted in China and will work together with the Chinese industry to move forward.' "Meng Pu said:" Whether it is from the perspective of business model or Qualcomm's commitment to China, Look, we do things, including after the acquisition of NXP, the Chinese industry will be more and more support for the larger companies will have more resources to support China's industry, and we work together to progress.