Qualcomm Scraps $45 Billion NXP Deal After No Response from China

Qualcomm Agrees for a Valentine's Day Date With Broadcom

San Diego-based chipmaker Qualcomm has walked abroad from buying Dutch firm NXP Semiconductors for $45 billion afterward the Chinese regulators did not grant concluding-minute approving to the bargain.

The two companies entered into a deal in October 2016, with the borderline to close the deal extended several times as the companies waited for China to corroborate or deny the merger.

Eight of the nine countries where Qualcomm has businesses had approved the deal.

With no answer from Mainland china's Ministry of Commerce as the borderline passed (it was 9.30 a.one thousand. Indian time on Thursday), it was clear that the merger was officially dead.

"We intend to terminate our purchase understanding to larn NXP when the understanding expires at the end of the day today, pending whatever new textile developments," Steve Mollenkopf, CEO of Qualcomm Incorporated, said in a statement late on Wednesday.

"In addition, upon termination of the agreement, we intend to pursue a stock repurchase program of up to $30 billion to deliver meaning value to our stockholders," he added as the company announced results for its fiscal third quarter that ended June 24.

All the same, Qualcomm will beat out a break-upward fee of $2 billion to NXP Semiconductors that makes automotive, security and Cyberspace of Things (IoT) solutions.

The bit-maker reported revenue of $5.half dozen billion, proverb the revenue in the third quarter grew four per cent year-on-yr. The net income was $1.two billion.

"We reported results significantly above our prior expectations for our fiscal third quarter, driven past solid execution across the company, including very strong results in our licensing concern," Mollenkopf said.

The company too announced that it does not look to supply wireless chips for upcoming iPhones. Qualcomm is a major supplier of 4G fries for smartphones. Co-ordinate to CNET, Apple has been using Intel 4G chips for some iPhone models and Qualcomm chips for others.

"Nosotros believe Apple tree intends to solely utilize our competitor's modems rather than our modems in its next iPhone release," Qualcomm Fiscal Master George Davis was quoted as saying.

Apple and Qualcomm have been fighting over patents since the outset of 2017.

"Qualcomm didn't say which company volition supply modems for the next iPhone, merely it is believed to be Intel," the study added.

With iPhone vii and vii Plus launch in 2016, Apple began using Intel chips in some variants of iPhones.

However, some media reports said Apple has reportedly conveyed a bulletin to Intel, saying it will not be using the chip-maker's 5G modems for 2020 iPhone models.

Earlier reports suggested that Apple was turning to Taiwanese mobile chipset maker MediaTek for its communications components and that the California-headquartered tech giant was looking to move away from using Intel processors altogether by 2020.

Apple started using Intel components in modern iPhones equally it wanted to reduce its dependence on chips from Qualcomm, with which it got entangled in a long legal battle.