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.
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: 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?
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.
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.
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