QUALCOMM Settles Anti-Trust Dispute With Taiwan Regulators

QUALCOMM IncorporatedQCOM recently announced that it has reached a settlement with the Taiwan Fair Trade Commission ("TFTC") in an anti-trust case for about $93 million to safeguard its patent-licensing business.

The company was debarred from a hostile takeover bid by rival Broadcom Inc. AVGO and was itself forced to abandon the buyout of NXP Semiconductors N.V. NXPI amid trade-related hostilities between the United States and China.

The latest development annuls a fine of nearly $778 million imposed by the TFTC in 2017, when it accused the mobile chip maker of refusing to sell chips to mobile handset makers that didn't agree to its patent-licensing terms. The company was also accused of cutting Apple Inc. AAPL a royalty discount in exchange for the exclusive use of QUALCOMM's modem chips in the past.

QUALCOMM has also agreed to invest $700 million in Taiwan over the next five years. It will have to provide reports every six months to Taiwanese officials for five years to show that it is negotiating in good faith with handset makers in patent-licensing deals.

In addition, the company will drive certain commercial initiatives in Taiwan over the next five years for the benefit of the mobile and semiconductor ecosystem, SMEs and consumers, including 5G collaborations and new market expansion.

QUALCOMM has contributed broadly to the development of Taiwan's mobile and semiconductor industries to achieve shared success in Taiwan and globally for more than two decades. Its significant R&D investments in fundamental mobile technologies and its broad-based licensing of those technologies to mobile phone suppliers have facilitated the explosive growth of the mobile communications industry in Taiwan and worldwide, ultimately benefiting consumers.

The stock has gained 14.3% compared with 4.2% growth for the industry in the past three months.

QUALCOMM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Wall Street's Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

QUALCOMM Incorporated (QCOM): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

Broadcom Limited (AVGO): Free Stock Analysis Report

NXP Semiconductors N.V. (NXPI): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos