Today at Qualcomm’s China Technology Day, Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated (NASDAQ: QCOM), announced that it has signed four memoranda of understanding (MoU) wherein Lenovo Mobile Communication Technology, Ltd., Guangdong OPPO Mobile Telecommunications Corp., Ltd., vivo Communication Technology Co., Ltd. and Xiaomi Communications Co., Ltd. express interest in the purchase of Qualcomm Technologies’ RF Front End (RFFE) components with a value of no less than $2 billion, in the aggregate, over three years. Any obligation to purchase and supply these components is subject to the execution ofsubsequent definitive agreements.
Qualcomm Technologies’ RFFE components constitute a rich portfolio of comprehensive, system-level modem-to-antenna RF front-end platform solutions, which are designed to enable OEMs to rapidly build mobile devices at scale for easy global expansion. The scope of Qualcomm Technologies’ broad RF front-end platform include GaAs Power Amplifiers (PA), Envelope Trackers, Multi-Mode PA and modules, RF switches, discrete filters and filter-rich modules, and antenna tuners across cellular and connectivity technologies.
In addition to today’s MoUs, Qualcomm Technologies shared information surrounding its upcoming 5G Tunable RF front-end as part of its 5G roadmap. The break-through 5G Tunable RF front-end is designed to enable OEMs to differentiate their 5G products with thinner design, higher performing system-level expertise and 5G product readiness.
“Qualcomm Technologies has long supported the Chinese mobile ecosystem and today’s MoU signings with Lenovo, OPPO, vivo and Xiaomi further demonstrates our commitment to that ecosystem, as well as our strategy to continue to grow our RF front-end business,” said Cristiano Amon, president, Qualcomm Incorporated. “Our robust RF front-end solutions help these OEMs to not only build power-efficient devices at scale in a cost-effective way, but also to deliver advanced mobile devices to consumers not just in China, but around the world.”
RF front-end technology is critical to the experiences users expect on their mobile phones. Qualcomm Technologies’ comprehensive RF front-end portfolio delivers industry-leading mobile solutions that support the current mobile ecosystem, as well as address the rapidly expanding complexity and challenges of 4G LTE Advanced and 5G networks. Specifically, Qualcomm Technologies’ comprehensive modem-to-antenna RF front-end portfolio is designed to help Chinese OEMs to move away from RF front-end technology based on a component approach to one focused on a system-level modem-to-antenna approach which is required for 5G RFFE solutions. Now, with Qualcomm Technologies’ comprehensive system-level modem to antenna solutions, Chinese OEMs can design mobile devices with wider frequency range, greater capacity, enhanced coverage and cutting-edge power efficiency to address 4G LTE Advanced technology demands, as well as upcoming 5G networks.
Christian Eigen, Leader World Wide Strategic Alliances, Lenovo, added, “Over the years, Lenovo has worked with Qualcomm Technologies across a wide range of technologies for our laptop and smartphone portfolio. With Qualcomm Technologies’ system-level approach to RFFE design we can continue to offer our customers products that combine a best in class design and innovation with optimal signal strength.”
“Qualcomm Technologies has a comprehensive RF front-end portfolio including competitive products with obvious advantages,” said Andy Wu, vice president, OPPO. “OPPO has been conducting in-depth collaboration with Qualcomm Technologies, and we look forward to bringing more Qualcomm Technologies’ RF front-end components into OPPO’s products through the joint efforts from both sides.”
“Our global consumers demand high-level performance, longer battery life and advanced connectivity from their devices,” said Jesse Shi, senior vice president, vivo. “End-to-end system-level design and support from Qualcomm Technologies allows us to reduce our design-in effort and integration time, while still providing consumers with performance rich, premium-tier devices.”
“At Xiaomi, we pride ourselves on bringing the most innovative products we can to our growing customer base,” said KS Yan, MiPhone vice president, vice chairman of MiPhone quality committee, Xiaomi.” “By utilizing Qualcomm Technologies’ modem to antenna platform solutions to RF front-end design, we can take full advantage of performance enhancement features enabled by tight modem-RFFE interaction, bringing more advanced devices to market faster in order to better address global consumer demand for innovative, beautiful and affordable smartphones.”
This announcement was issued as part of Qualcomm’s China Technology Day, in which Qualcomm discussed the global future of mobile technology and how the expanded adoption of RFFE technologies will play an integral role in the rapid evolution to 5G.
For more information about Qualcomm Technologies’ RF front-end solutions or the Company’s efforts to bring 5G to the world, please visit www.qualcomm.com.
Qualcomm invents breakthrough technologies that transform how the world connects and communicates. When we connected the phone to the Internet, the mobile revolution was born. Today, our inventions are the foundation for life-changing products, experiences, and industries. As we lead the world to 5G, we envision this next big change in cellular technology spurring a new era of intelligent, connected devices and enabling new opportunities in connected cars, remote delivery of health care services, and the IoT — including smart cities, smart homes, and wearables. Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, all of our engineering, research and development functions, and all of our products and services businesses, including, the QCT semiconductor business. For more information, visit Qualcomm’s website, OnQ blog, Twitter and Facebook pages.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
In addition to the historical information contained herein, this press release contains forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that are inherently subject to risks and uncertainties, including but not limited to statements regarding certain OEMs’ interest in purchasing RFFE components from Qualcomm Technologies in the future, the value of any such purchases, the timing of any such purchases and the timing of any payments related to such purchases; Qualcomm Technologies upcoming 5G Tunable RF front-end; and the value, benefits and advantages Qualcomm Technologies’ RFFE components may provide to OEMs and their products, technologies and businesses. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should,” “will” and similar expressions are intended to identify such forward-looking statements. These statements are based on our current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those expressed or implied by the forward-looking statements herein due to a number of important factors, including but not limited to purchase decisions, if any, by OEMs, and the value and timing of any purchases by those OEMs; changes in economic, business, competitive, technological, strategic and/or regulatory factors, and other factors affecting our operations; and risks associated with Broadcom’s disruptive takeover proposal; our proposed acquisition of NXP; commercial network deployments, expansions and upgrades of CDMA, OFDMA and other communications technologies, our customers’ and licensees’ sales of products and services based on these technologies, and our customers’ demand for our products and services; competition in an environment of rapid technological change; our dependence on a small number of customers and licensees; our dependence on the premium-tier device segment; attacks on our licensing business model, including current and future legal proceedings and governmental investigations and proceedings, or actions of quasi-governmental bodies or standards or industry organizations; potential requirements to change our patent licensing practices due to governmental investigations and/or private legal proceedings challenging those practices; the enforcement and protection of our intellectual property rights; our ability to extend our technologies, products and services into new and expanded product areas and adjacent industry segments; risks associated with operation and control of manufacturing facilities acquired through the formation of our joint venture, RF360 Holdings; the continued and future success of our licensing programs, including for 4G single mode products and emerging industry segments, and the need to extend license agreements that are expiring; our dependence on a limited number of third-party suppliers; claims by third parties that we infringe their intellectual property; strategic acquisitions, transactions and investments; our cost reduction plan; our compliance with laws, regulations, policies and standards; our use of open source software; our stock price and earnings volatility; our indebtedness; security breaches or other misappropriation of our intellectual property or proprietary or confidential information; potential tax liabilities; global, regional or local economic conditions that impact the industries in which we operate; our ability to attract and retain qualified employees; foreign currency fluctuations; and failures in our products or services or in the products or services of our customers or licensees, including those resulting from security vulnerabilities, defects or errors. These and other risks are set forth in Qualcomm Incorporated’s Annual Report on Form 10-K for the fiscal year ended September 24, 2017 filed with the SEC. Our reports filed with the SEC are available on our website at www.qualcomm.com. We undertake no obligation to update, or continue to provide information with respect to, any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.