Qualcomm announced a settlement of the NDRC China investigation. The very dense press release raises as many questions as it answers. Bad news: a 46% reduction in royalty rates. Good news: lots of friends in China, audit rights and the ability to charge royalties for TD phones. Hard to fully gauge, but seems like a net positive.
The semiconductor industry is not really a growth industry anymore, and resembles the steel industry as much as anything. That means scale matters, leaving M&A as the most likely path to growth, and possibly survival.
I recently had the chance to catch up with a few contacts from China who think the end is in sight for Qualcomm’s troubles with the government, but timing is uncertain and will likely result in a reduction in royalty rates.
There was an interesting post on Techcrunch this afternoon, called “The Revival of Semiconductor Investing”. The title alone touched a nerve. It states something that I would very much like […]
Before the show, I posted that the nature of MWC has changed a lot over the years. This used to be a show solely focused on selling heavy iron networking […]
I heard an interesting metric today. A friend of mine had just gotten back from Taiwan where he was looking for a contract manufacturer for his clever new device. He […]
For as long as anyone can remember, the cost of computing has been steadily declining. This idea is enshrined as Moore’s Law which roughly states that the number of transistors […]