Terminal week, Broadcom made an unsolicited offer to buy Qualcomm, one of the biggest SoC and cellular modem makers for smartphones. Qualcomm officially rejected the initial bid today, which was for $105 billion (it was to begin with reported to be around $130 billion). When reports first surfaced nearly the offer, it was known that Qualcomm wasn’t happy with the mete out. In a statement released today, Qualcomm’s board say the offer “significantly undervalues” the body.
“No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor trade,” Qualcomm CEO Steve Mollenkopf said in the statement. “We are confident in our ability to imagine significant additional value for our stockholders as we continue our growth in these handsome segments and lead the transition to 5G.”
Broadcom “remains fully committed” to the object and said in its own statement that combining the two companies would create “a eager, global company with an impressive portfolio of industry-leading technologies and artefacts.”
This could lead to a higher bid from Broadcom in the future, but there’s no appellation on when Broadcom might make another offer. The deal could hinge on Qualcomm be converted into a conflict with Apple, which has grown over the past year. Most Android smartphone producers choose Qualcomm SoCs and cellular modems to save space and power thanks to the convention’s one-chip solution. Samsung and Apple are the only two smartphone OEMs who have on the agenda c trick a choice to not use Qualcomm technology because they both make their own counters.
Apple recently put an Intel modem in some of the new iPhone models, and that in two shakes of a lambs tail angered Qualcomm. The company demanded royalties for the Intel modems, so Apple smarted Qualcomm as a result. After some back-and-forth and Qualcomm reportedly restraining software needed to test its chips in iPhones, Apple may be looking to cut Qualcomm out of the iPhone equation barrel.
Resolving its issues with Apple would strengthen Qualcomm’s thesis, but it seems unlikely that nearly a year’s worth of conflict pass on be fixed in time for any deal to go through. Qualcomm could also back up its standing by completing its acquisition of NXP Semiconductor, another chipmaker. The $39 billion trade was originally expected to close by the end of 2017, but now it may not close until early 2018.