To restart the charge of licensing fees in China as one of the top priorities for Qualcomm

    April 2, the Financial Times reported that Qualcomm had been forced to cut royalties in China's antitrust investigations and was fined 6.1 billion yuan for heavy fines, The current task is to minimize the adverse effects.

Now Qualcomm is trying to convince the Chinese government that it is vital to the Chinese market and to Chinese technology giants such as Millet, Lenovo and Huawei. The Chinese market accounts for half of Qualcomm's 26 billion dollar revenue last year.

Derek Aberle, Qualcomm's president, attended this year's Boao Economic Forum (Abely). Qualcomm also sponsored the Boao Economic Forum for the first time. As part of its efforts to help China develop its semiconductor industry, Qualcomm has started building a chip factory in Fujian. These measures are part of the efforts of Qualcomm to restore normalcy to China's operations.

One of the top priorities of Qualcomm is to restart the charge for patent licensing in China. Many manufacturers have delayed the payment of royalties to Qualcomm for antitrust investigations.

Analysts say Qualcomm's high licensing fee for its 3G CDMA and 4G LTE technology – up to 5% of the wholesale price of a mobile phone – makes it a "target" for regulators. Sanford Bernstein Semiconductor industry analyst Stassy Lasgans (Stacy Rasgon), an investment management firm, says the reason Qualcomm can charge such high royalties is that "good technology and good lawyers, and agreements with handset makers were signed 20 years ago." At present, Qualcomm is less likely to replicate this business model.

China's share of Qualcomm revenues is likely to continue to rise. China Mobile will shift to wireless standards based on Qualcomm Technology. China Mobile last year added more than 100,000,004 G LTE users, and plans to add more than 200,000,004 G of LTE this year.

Qualcomm is also facing opportunities in other markets outside China. With Millet, Lenovo and Huawei on the international market, Qualcomm's patents will protect them from lawsuits in overseas markets. For example, Millet was sued by Ericsson in India last year for infringement, but does not include the use of Qualcomm-chip models. Abely said, "to help Chinese enterprises to carry out export business, will be a major focus of our work." ”

Abely is very optimistic about the Chinese market, "for us, antitrust investigation has become the past, we will expand cooperation with Chinese manufacturers." "Qualcomm realizes that the best strategy is not to hinder China's growth, but to help China grow as much as possible."