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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: JeffreyHF who wrote (146038)	5/8/2018 4:06:11 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 196545

There are a number of precedents that might offer insights into the JV Chinese server. A sale of Centriq might result in transfer of the QCOM portion of ownership to a new owner, similar to what was anticipated when Toshiba attempted to sell its portion of a JV with SanDisk, now Western Digital. Western Digital opposed the sale to any competitor, such as Hynix, and the sale eventually didn't take place. But it's not clear that an outright sale of Qualcomm's Centriq investment would be opposed by its JV partner. In fact, the partner might well want to buy the asset. That would also most likely satisfy MOFCOM, which, as you suggest, might then be more motivated to approve the NXPI acquisition. If I understand Centriq correctly, Qualcomm owns a proprietary chip design that is based on ARM technology, and the chip is fabricated by a non-US company and destined for sale to US or non-US firms. Since Centriq is not unique, in the sense that other companies (mostly Intel) have technology that can do similar or even more jobs), it doesn't seem as likely that regulators in the US or abroad would interfere with a change in Qualcomm's ownership of that portion of the Chinese JV. Art

To: JeffreyHF who wrote (146038)	5/8/2018 4:42:24 PM
From: Jim Mullens	3 Recommendations Recommended By Art Bechhoefer JeffreyHF manning18 Read Replies (1) \| Respond to of 196545

Jeffrey, re: China Server JV.......................................... “...Are there interconnecting considerations in order to secure MOFCOM approval of NXP? >>>>>>>>>>>>>>>>>>>>>>>>>> Lots of robust words in the JV PR signifying - strategic cooperation, deepening our level of cooperation, long term commitment, overarching agreement. But the words become meaningless without the action follow-thru. + Perhaps QCOM’s leveraging the Server JV to break the NXP log jam? No cooperation in servers without approval of NXP. The July deadline is ticking. On the other hand, will the U.S. “cooperate”, allow data center server technology exchange? Is it ever easy investing in globally disrupting technology companies with unique business models? >>>>>>>>>>>>>>>>>>>>>>>>>> https://www.qualcomm.com/news/releases/2016/01/16/qualcomm-and-guizhou-province-sign-strategic-cooperation-agreement-and-form Qualcomm and Guizhou Province Sign Strategic Cooperation Agreement and Form Joint Venture to Design and Sell World-Class Server Chipsets in China Jan 17, 2016SAN DIEGO and BEIJING Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries. In a ceremony today at the China National Convention Center in Beijing, Qualcomm Incorporated (NASDAQ: QCOM) and officials from the People’s Government of Guizhou Province signed a strategic cooperation agreement and unveiled a joint venture – the Guizhou Huaxintong Semi-Conductor Technology Co., Ltd. The joint venture, with initial registered capital of RMB 1.85 billion (approx. $280 million USD), will be 55 percent owned by the Guizhou provincial government’s investment arm and 45 percent owned by a subsidiary of Qualcomm. The joint venture will focus on the design, development and sale of advanced server chipset technology in China, the second largest country in the world for server technology sales, according to industry analysts. In attendance at the ceremony were Steve Mollenkopf, chief executive officer of Qualcomm Incorporated, Derek Aberle, president of Qualcomm Incorporated, and other senior Qualcomm executives, as well as Chinese officials including Chen Min’er, secretary of the Guizhou Provincial Committee of the Communist Party of China (CPC) and Sun Zhigang, acting governor of Guizhou Provincial Government. The joint venture is an integral part of the strategic cooperation formed between Qualcomm and the People’s Government of Guizhou Province. In addition, Qualcomm also will establish an investment company in Guizhou that will serve as a vehicle for future investments in China. The overarching agreement establishes a long-term commitment between the two parties to work closely together to identify and pursue business opportunities in the province. “The actions announced today are important steps for Qualcomm as we deepen our level of cooperation with, and investment in, China. We have worked actively with our partners in China for more than 20 years; however, the strategic cooperation with Guizhou represents a significant increase in our collaboration in China,” Aberle said. “We are not only providing investment capital, but we also are licensing our server technology to the joint venture and assisting with R&D process and implementation expertise; this underscores our commitment as a strategic partner in China.” “This server technology joint venture is a win-win scenario for Qualcomm and our Guizhou partner and will yield mutual benefits for both sides as we together pursue a very large data center opportunity in China,” said Anand Chandrasekher, senior vice president and general manager, Qualcomm Datacenter Group, Qualcomm Technologies, Inc. “The central government has attached great importance to development of the integrated circuit (IC) industry by formulating the IC Industry Development Outlook and setting up the National IC Industry Investment Fund to boost the development of the IC industry,” said Qin Rupei, executive vice governor, Guizhou Provincial Government. “Qualcomm’s partnership with Guizhou on its industry-leading server chip technology is a strategic choice made by the world leader in wireless technology, and also a big opportunity for Guizhou to develop the IC industry. I believe the collaboration will certainly achieve fruitful results.” Guizhou Huaxintong Semi-Conductor Technology Co., Ltd. will be registered in Guian New Area, Guizhou, with operations in Beijing. As part of the deal, Qualcomm Technologies, Inc. will license its proprietary server chip technology and provide R&D processes to the joint venture to support the commercial viability and success of the new company. Guizhou Province is the first to build an industrial cluster for big data development in China. Guian New Area in Guizhou is an important base for the development of the big data industry and will include a green datacenter cluster of more than 2.5 million servers for companies including China Telecom, China Unicom and China Mobile. This announcement is on the heels of several other investments by Qualcomm in China, including Qualcomm’s cooperation with Semiconductor Manufacturing International Cooperation (SMIC) to manufacture smartphone chips, investment into the SMIC Advanced Technology Research and Development (Shanghai) Corp equity joint venture and the creation of a $150 million USD China Investment Fund.