Qual­comm lands $12-bil­lion deal

Los Angeles Times - - BUSINESS BEAT - By Mike Free­man mike.free­man@sdunion­tri­bune.com

Trav­el­ing with Pres­i­dent Trump on a trade mis­sion to China, Qual­comm of­fi­cials said late Wed­nes­day that the com­pany has signed an agree­ment with Chi­nese smart­phone mak­ers Xiaomi, Vivo and Oppo to sup­ply $12 bil­lion in com­po­nents over the next three years.

The deal is non­bind­ing. Qual­comm Chief Ex­ec­u­tive Steve Mol­lenkopf and of­fi­cials from the Chi­nese smart­phone firms signed the mem­o­ran­dums of un­der­stand­ing in Bei­jing in a cer­e­mony led by Xi Jin­ping, pres­i­dent of the Peo­ple’s Repub­lic of China, and Trump.

Mol­lenkopf was part of Trump’s Depart­ment of Com­merce trade del­e­ga­tion to China, which in­cluded ex­ec­u­tives of lead­ing Amer­i­can com­pa­nies.

The an­nounce­ment comes as Qual­comm read­ies to re­spond to what will prob­a­bly be a hos­tile $105-bil­lon takeover bid from Broad­com.

Early this month, Broad­com Chief Ex­ec­u­tive Hock Tan ap­peared with Trump in a cer­e­mony in the U.S., where he pledged to re­turn Broad­com’s head­quar­ters from Sin­ga­pore to the U.S.

Reg­u­la­tors glob­ally are ex­pected to closely scru­ti­nize a po­ten­tial Broad­com-Qual­comm com­bi­na­tion. The com­bined com­pany would be a lead­ing sup­plier for cel­lu­lar, Wi-Fi, Blue­tooth, ra­dio fre­quency fil­ters, trans­ceivers and other chips on smart­phone cir­cuit boards.

While Chi­nese phone brands are largely un­known to U.S. con­sumers to­day, an­a­lysts be­lieve China’s smart­phone mak­ers have am­bi­tions to sell hand­sets world­wide in com­ing years.

Qual­comm said it has been sup­port­ing the Chi­nese mo­bile ecosys­tem for al­most 25 years and con­tin­ues to ex­pand its in­vest­ments, es­tab­lish­ing a num­ber of branches, joint ven­tures and re­search and de­vel­op­ment cen­ters.

“I’m hon­ored to rep­re­sent Qual­comm as part of this im­por­tant trade del­e­ga­tion, which show­cases the im­por­tance of win-win busi­ness re­la­tion­ships be­tween the U.S. and China,” Mol­lenkopf said in a state­ment.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.