Qualcomm Buys Remaining Ownership Stake In RF360 Holdings
Zacks Investment Research | Sep 17, 2019 08:55AM ET
Qualcomm Incorporated (NASDAQ:QCOM) recently announced that it has completed the acquisition of the remaining interest in RF360 Holdings Singapore Pte. Ltd. — a joint venture with TDK Corporation.
Qualcomm is known to be one of the largest manufacturers of wireless chipset built on baseband technology. It has been trying to retain its leadership in 5G, chipset market and mobile connectivity with several technological feats and state-of-the-art product launches.
Per the announcement, TDK Electronics’ remaining interest in the joint venture was valued at $1.15 billion in August 2019. Markedly, the joint venture has produced RF front-end (RFFE) filters, which allow the chipmaker to deliver 4G/5G RFFE solutions. The total purchase price is about $3.1 billion, which includes initial investment, payments to TDK based on sales by the joint venture and development obligations.
With this buyout, Qualcomm Technologies, Inc. (Qualcomm’s wholly-owned subsidiary) will be able to provide customers with its Snapdragon 5G Modem-RF System, including 5G NR sub-6 and mmWave solutions, multiplexers, and antenna tuning. Qualcomm Technologies now has one of the broadest portfolios of RFFE products, comprising integrated and discrete micro-acoustic components utilizing RFFE filter technologies.
Moreover, Qualcomm’s second generation RFFE solutions will allow OEM customers to design thin, high-performance, battery-efficient 5G multimode devices at scale. The company is poised to benefit from the strong adoption of its Snapdragon 5G Modem-RF Systems in more than 150 5G design wins.
The company continues to execute its strategic objectives, including driving the global transition to 5G, protecting the value of its technology, and expanding into new industries and product categories for future growth.
Qualcomm has long-term earnings growth expectation of 12.8%. The stock has added 37.1% compared with the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.