April 27, 2024
Mobile & Internet
FTC sets conditions for Qualcomm’s takeover of NXP
[THE INVESTOR] Korea’s corporate watchdog said on Jan. 18 that US-based chipmaker Qualcomm must make several commitments to get approval for its takeover of the global Dutch company NXP here, including the sale of NXP’s standard essential patents.
In 2016, Qualcomm, which specializes in mobile chips, offered to buy semiconductor manufacturer NXP, which mostly makes products for NFC connectivity, for some US$38 billion.
Last year, Qualcomm sought approval for the takeover in Korea.
The Fair Trade Commission stipulated that Qualcomm must not acquire NXP’s standard essential patents for NFC and various system patents.
Qualcomm is also prohibited from selling bundled products or changing NXP‘s licensing, according to the FTC. Qualcomm must pledge to make it possible for rival companies to function with NXP products, the FTC said.
Related industry players have been expressing concerns that after the NXP acquisition, Qualcomm could enjoy great influence and a high market share in cellular chipsets and the NFC sector.
By Alex Lee and newswires (alexlee@heraldcorp.com)
