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China Investigates Qualcomm

11/25/2013 03:16 PM EST
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krisi
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Re: Pursued by Chinese government
krisi   12/2/2013 4:36:09 PM
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Does Qualcomm has a design center in China?

lilzz
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Re: Pursued by Chinese government
lilzz   11/30/2013 2:21:22 PM
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Junko,  You should know the answer.  Any company making alot from a host country yet give back nothing is asking for trouble.  Very Simple. 

lilzz_lilzz
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Re: Pursued by Chinese government
lilzz_lilzz   11/29/2013 4:45:41 AM
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Qualcomm is making too much money in China, 49% of its revenue is from China which amount to $12.3Billion.  All Qualcomm's design are done outside of China and so is its manufacturing, which mostly done in Taiwan. 

From Chinese government's view, this is UNacceptable, making so much from China yet contributes nothing.

Like Intel, at least it setup a 8 inch chipset fab in Dalian, well that's at least some contribution to China.

Like Samsung, setup a major flash fab in Xian, that's contribution to China.

I bet the next target would be Broadcom. Same as QUalcomm, all design and manufacturing done outside of China.  

All those companies making tons of money from China yet contribute nothing back will surely be targeted.

junko.yoshida
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Re: Pursued by Chinese government
junko.yoshida   11/28/2013 12:41:39 AM
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Of course, pitting multimationals against chinese companies, and paiting the conflict in good vs. evil is never a recipe for finding real solutions.

But then again, where is the real problem here?

We need to know more about what exactly Chinese agency is looking into Qualcomm for.

junko.yoshida
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Re: Pursued by Chinese government
junko.yoshida   11/27/2013 4:11:37 PM
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While geopolitics is one of the powerful tools nations can use to play to their advantages, it strikes me that it's rather short-sighted. After all, there are still a number of areas where different companies can work together to each of their advatnage...

junko.yoshida
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Re: Pursued by Chinese government
junko.yoshida   11/27/2013 4:08:13 PM
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@docdivakar, I agree. I don't doubt that. I am sure that Qualcomm won't be the last to be investigated, either.

 

docdivakar
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Re: Pursued by Chinese government
docdivakar   11/27/2013 1:03:32 PM
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@Junko: seems to me that both sides (China vs. Multinationals) are evolving & perhaps maturing with the process of "Geopolitics" and its implications to doing business. The very recent USAF flights over China's self-claimed defensive air corridor (over Senkaku islands) may elicit NDRC's scrutiny over more multinationals?

MP Divakar

junko.yoshida
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Re: Pursued by Chinese government
junko.yoshida   11/27/2013 12:29:28 PM
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@wave.forest, you wrote:

In short, these big companies are not as welcome as before.

I think it sums it up. Well put.

junko.yoshida
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Re: China Investigates Qualcomm
junko.yoshida   11/27/2013 12:26:40 PM
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@docdivakar, that's as good speculation as any.

Considering the recent move to consolidate Spreadtrum/RDA Micro under the one roof of Tsuinghua Unigroup (hence strengthening the position of China-born baseband/app processor company), going after Qualcomm -- for whatever charge that it can stick to it -- might make sense from the Chinese point of view.

 

docdivakar
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Re: China Investigates Qualcomm
docdivakar   11/27/2013 10:57:25 AM
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Here is a link to the story on this topic at BBC:

http://www.bbc.co.uk/news/technology-25084078

The article makes an interesting quote by an analyst: "We suspect this investigation is related to the forthcoming launch of TD-LTE by China Mobile... and the negotiations on chip pricing and license pricing between Qualcomm and Chinese-based handset [manufacturers] that are likely occurring right now," said Travis McCourt an analyst with Raymond James & Associates.

MP Divakar

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