• Home
  • News
  • Artificial Intelligence
  • Internet of Things
  • Open Source
  • Hardware
  • Software
  • Security
  • Whitepapers
  • Data Strategy Spotlight
  • Newsletters
  • Whitepapers
    • Inqlogo 120x194
      Five things you should look for in choosing a Testing provider

      Choosing a Testing Partner can be complex.  So what do you look for?  This guide offers insight into the qualities you must look for in choosing a Testing provider.  Download now to learn more.

      Download
      Inqlogo 120x194
      Your questions answered: How to protect your data in the cloud

      The number of successful cyberattacks per year per company has increased by 46% over the last four years. But what really needs to be considered when exploring a solution? What questions need to be asked? Download to find out...

      Download
      Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Follow us
    • RSS
    • Twitter
    • LinkedIn
    • Newsletters
    • Facebook
    • Google+
    • YouTube
  • Newsletter
  • Industry Voice
  • Data Strategy Spotlight
The Inquirer
The Inquirer
  • Home
  • News
  • Artificial Intelligence
  • Internet of Things
  • Open Source
  • Hardware
  • Software
  • Security
  • Trending
  • MWC 2019
  • Article 13
  • AMD Radeon VII
  • Galaxy S10
  • Nvidia GTX 1660 Ti 
The Inquirer
  • Friction

Qualcomm calls off NXP deal as China lets the clock run out

Chipmaker scraps merger amid rising trade tensions between the US and China

Qualcomm calls off NXP deal as China lets the clock run out
Qualcomm calls off NXP deal as China lets the clock run out
  • Carly Page
  • Carly Page
  • @CarlyPage_
  • 26 July 2018
  • Tweet  
  • Facebook  
  • Google plus  
  •  
  •  
  • Send to  
0 Comments

CHIPMAKER Qualcomm has called off its $44bn (£38bn) acquisition of NXP Semiconductors, blaming rising trade tensions between the US and China.

Qualcomm initially made an offer for Dutch semiconductor outfit NXP back in October 2016, saying such a deal would help it expand beyond smartphones into new industries like the IoT and automotive.

While the deal was swiftly approved by regulators in eight other jurisdictions, including the European Union and South Korea, it has been long held up by the Chinese anti-monopoly authorities over concerns that the merger would have an unfair advantage over rivals - fuelling speculation the deal was being used as leverage in the ongoing trade spat with Washington.

Qualcomm on Wednesday gave China a final deadline of midnight to wave through the deal, but Beijing's Ministry of Commerce simply let the clock run out. 

Qualcomm has said it will scrap the agreement altogether rather than continue the uncertain fight toward a completed acquisition. In doing so, it'll have to pay a breakup fee of $2bn, which the chipmaker said it will pay in cash and securities.

However, by abandoning the buyout, Qualcomm also frees up the cash it had set aside to pay for NXP, and the firm said it plans to put $30bn toward a stock repurchase program.

Qualcomm CEO Steve Mollenkopf said: "We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments.

"In addition, as previously indicated, upon termination of the agreement, we intend to pursue a stock repurchase program of up to $30 billion to deliver significant value to our stockholders."

The fall-through of its NXP merger isn't the only bad news Qualcomm had for investors this week. The chipmaker also confirmed that Intel will become Apple's exclusive supplier of modem chips for its incoming 2018 iPhones. µ

Further reading

  • Chips
Qualcomm's Snapdragon 845 trounces Intel's wireless modems in LTE benchmarks
  • 24 Jul 2018
  • Chips
Qualcomm mmWave antennas promise 5G for next-gen smartphones
  • 23 Jul 2018
  • Hardware
Broadcom rebounds from Qualcomm with £14.3bn CA Technologies buy
  • 12 Jul 2018
  • Chips
Qualcomm's new Snapdragon chips will bring dual cameras to mid-range smartphones
  • 27 Jun 2018
  • Tweet  
  • Facebook  
  • Google plus  
  •  
  •  
  • Send to  
  • Topics
  • Friction
  • Qualcomm
  • nxp
  • Friction
  • china
  • donald trump
  • chips

INQ Latest

Labour shuts down databases after accusing breakaway MPs of accessing voter data
Labour shuts down databases after accusing breakaway MPs of accessing voter data

TIG denies everything, of course

  • Friction
  • 22 February 2019
Bowser to take over Nintendo America as Reggie Fils-Aime retires
Bowser to take over Nintendo America as Reggie Fils-Aime retires

We expect a coup from former Saved by the Bell star Mario Lopez any moment

  • Numb Thumbs
  • 22 February 2019
HTC unveils the Vive Focus Plus aimed at businesses
HTC unveils the Vive Focus Plus aimed at businesses

1,2,3,4, Vive will make you get down now

  • Hardware
  • 22 February 2019
Opera Touch for iOS adds blocking for GDPR cookie dialogues
Opera Touch for iOS adds blocking for GDPR cookie dialogues

It's a cookie monster

  • Software
  • 22 February 2019
Back to Top

Most read

Galaxy S10 price, release date and specs: S10, S10+ and S10e pre-orders begin
Galaxy S10 price, release date and specs: S10, S10+ and S10e pre-orders begin
iPhone 11 release date, specs and price: 2019 iPhones might offer reverse wireless charging
iPhone 11 release date, specs and price: 2019 iPhones might offer reverse wireless charging
Apple's folding iPhone patent shows a, er, Motorola Razr lookalike
Apple's folding iPhone patent shows a, er, Motorola Razr lookalike
CERN has made the original 1990s web browser available to play with
CERN has made the original 1990s web browser available to play with
Galaxy S10 lineup official barely any surprises in store
Galaxy S10 lineup official with barely any surprises in store
  • Contact
  • Marketing solutions
  • Enterprise IT Events
  • About Incisive Media
  • Terms & conditions
  • Privacy policy
  • RSS
  • Twitter
  • LinkedIn
  • Newsletters
  • Facebook
  • Google+
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017