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Qualcomm Decides to Remain As Is

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Dec 15, 2015, 8:27 AM   by Eric M. Zeman

Qualcomm has completed a review of its corporate structure and said it will not make any changes to its makeup and/or organization. The company was examining whether or not it would make sense to break the company up into separate parts to unlock more value for shareholders. "The strategic benefits of the current structure will best fuel Qualcomm's growth as we move through the upcoming technology transitions and extend our technologies into new user experiences, services and industries," said Steve Mollenkopf, CEO of Qualcomm. "The strategic benefits and synergies of our model are not replicable through alternative structures. We therefore believe the current structure is best." Qualcomm has a number of businesses. Its biggest are application processors and modems for smartphones and tablets.

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thebriang

Dec 15, 2015, 2:46 PM

Wow, I didnt see that coming....

I thought for sure Qualcomm was gonna pull an AMD. Of course your company is better off if you own the fab, because its a fab.

CPU production takes some skill and knowledge, it isn't printing off stickers, so of course your company is Much better off if your CPU design engineers can walk into the fab and talk with the fab engineers, who actually fabricate the actual chips.

The only advantage to selling off your physical fabs and dies is it gives a quick easy dividend bump to your shareholders... and hobbles your company for the rest of its existence.

No chip design company works better when you have to contact the contracted third party who now owns your old fabrication facility to try to tell them how to make your own chips. I...
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