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WSJ: Qualcomm won’t spin off chip or licensing divisions
June 11, 2025
For any purported power user in the mobile phone arena, the name Qualcomm is as synonymous with top tech as it is the Snapdragon SoC it manufacturers. DespiteHuaweiandMediaTekhaving made significant improvements in their own silicon recently, many still scoff at such “pretentious” power. Even Samsung’s Exynos brand has yet to rival the market share majority the San Diego, California-based company commands. Likewise, Qualcomm’s patent portfolio is, in many ways, part of the backbone of mobile infrastructure at-large.
Naturally, it is this exact dominance that has given rise to charges of monopolistic practices andcalls for Qualcomm to spin offits chip and patent licensing divisions, its twoprimarysources of income.Today,as reported by The Wall Street Journal, the company made an official decision and has announced it willnotbe doing any such thing, due to an unfavorable outcome for investors were it to happen. As the WSJ states:
The decision comes amid a somewhat tumultuous year for the company. Beginning very early onwith reports thatits then-new SoC, the Snapdragon 810, ran so hot thatit hampered performance, the fall-out then played out in a rather unfavorable fashion. LG, the first OEM to ship a consumer device with the 810, itsG Flex 2smartphone, would lateropt for the “lesser” Snapdragon 808when it came time to releasing its flagship, theLG G4. This resulted indamage control PR from Qualcomm.
The 810 situation also proved to be problematic amid reports, like that which Japanese carrier NTT docomo issuedvia in-store warnings, of the SoC’s overheating and ways to deal with the unwanted performance problem. This situation, coupled with a promise to consider separating its two main business units, led to not only losses,but also lay offsthis past summer.
Meanwhile, Qualcomm has also had to dealwith an investigative probe in Chinadue to its practices, and nowantitrust charges in the EU. The former of the two, which was settled earlier this year, resulted in a $975 million pay out. The latter has just began this month, and comes amid an investigation beginning in Taiwan, as well as emerging ones in both Korea and the United States stemming from the China charges.
News of Qualcomm’s decision not to splinter itself led to a stock price increase of 4% to $48.77 as of mid-Tuesday. It is currently hovering around $48.02.
There has been much anticipation in the months leading up to the 2016 launch ofthe Snapdragon 820, which by all accounts looks like it will be atrue titan of mobile performance. Rumors have suggested that Samsung, whichvery visibly avoided the 810at all costs, may beproducing Galaxy S7 variantsthat include the new chip, and just todayrumors of Sony including itintwodifferent flagships for next year.
For better – or worse – however, it may very well play out that if Qualcomm continues its success and current practices the next year could also see additional legal proceedings filed against it. What do you think? Are you a fan of Qualcomm? Should it split its two main businesses to avoid potentially more legal trouble in the future? Let us know in the comments section below!
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