Qualcomm inks MOU on sales

Source: Xinhua | 2018-01-26

QUALCOMM Technologies Inc has signed memorandums of understanding for sales worth at least US$2 billion with top Chinese smartphone vendors, receiving vocal support from the firms as it fights an unsolicited buyout bid from Broadcom Ltd.

Lenovo Group, Guangdong OPPO Mobile Telecommunications Corp, vivo Communication Technology and Xiaomi Communications have expressed an interest in buying Qualcomm components with a total value of no less than US$2 billion over three years, the US chip maker said yesterday.

The non-binding agreement will be subject to further agreements and covers technology related to RF Front-End components, Qualcomm said in a statement.

The companies announced the multi-year agreement at a Qualcomm-hosted event in Beijing attended by the US firm’s chairman and CEO.

At the event representatives from the Chinese companies expressed concerns that a possible acquisition of Qualcomm by Broadcom could hurt investment in chip technology.

Broadcom in November made an unsolicited US$103 billion bid for Qualcomm, which Qualcomm says undervalues it.

A potential merger would likely face regulatory scrutiny in China, where Qualcomm has been fined before over anti-trust issues and where the government is promoting local chip production.