Name: SCMP
Telephone: +852-2680-8888

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

knowledgeQuestion

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Sophie Yu

Bien Perez

China’s top economic planner, the National Development and Reform Commission, said the huge fine it has slapped on Qualcomm for anti-competitive practices is not aimed at knocking down the company but to create a fair competitive platform for all firms.
“The China market will be more open in the future and we welcome enterprises from all over the world to invest and develop in China,” Xu Kunlin, head of the antitrust division of the powerful NDRC said at a press conference in Beijing on Tuesday.
Qualcomm, the world’s largest supplier of mobile chips, agreed to pay 6.088 billion yuan (US$975 million) fine to end a 14-month long government probe.
The United States-based company said on Tuesday that it has reached a resolution with NDRC regarding the investigation under China’s Anti-Monopoly Law.
“The NDRC has issued an Administrative Sanction Decision finding that Qualcomm has violated the AML,” a statement issued by the company said. “Qualcomm will not pursue further legal proceedings contesting the NDRC’s findings.”
“Qualcomm has agreed to implement a rectification plan that modifies certain of its business practices in China and that fully satisfies the requirements of the NDRC’s order. Although Qualcomm is disappointed with the results of the investigation, it is pleased that the NDRC has reviewed and approved the company’s rectification plan,” the Qualcomm statement said.
Xu vowed to strengthen the Anti-Monopoly Law in China because “the upgrade of China’s economy relies on technology innovation, which can’t be achieved by policy, or by (government) sponsorship – fundamentally it requires a fair competitive environment”.
The fine is the largest imposed against a company in China, but lower than recently reported estimates. The Securities Times had earlier speculated that the penalty could reach 10 billion yuan.
“The fine is not our aim,” Xu said. He said Qualcomm has been “very co-operative” and both sides communicated over the matter several times. “So, we didn’t fine Qualcomm according to the highest level, which is 10 per cent (of the annual sales in 2013).”
The NDRC and Qualcomm met up 28 times during the process and Xu met Qualcomm president eight times, according to Xu. “We listed all their behaviour that violated the law the first time we met,” Xu said.
He also said the investigation was launched because in 2009 the NDRC received reports against Qualcomm from two American companies, and during the investigation, another American firm also reported Qualcomm for monopolising the market.
Qualcomm has played an important role in the success of the mobile and semiconductor industries in China for many years, and we look forward to building upon this foundation as we grow our investments, engagement and business in China
Steve Mollenkopf, chief executive, Qualcomm
The company said it expects to pay the fine in time, as required by the NDRC.
Qualcomm president Derek Aberle admitted last month that the government investigation was disruptive to its business on the mainland, which saw the company agree to a settlement with one licencee.
Although the firm is disappointed with the results of the investigation, Qualcomm chief executive Steve Mollenkopf said in a statement that the resolution has removed the uncertainties surrounding its business on the mainland.
“Qualcomm has played an important role in the success of the mobile and semiconductor industries in China for many years, and we look forward to building upon this foundation as we grow our investments, engagement and business in China,” Mollenkopf said.
The company said it plans to continue to expand its investments and collaborations, including with the mainland’s mobile network operators, smartphone makers and other device suppliers, and within the country’s semiconductor industry. 
In July last year, Qualcomm created a China-specific investment fund of US$150 million to further the development of mobile and semiconductor technologies, including initial investments in five Chinese companies.
The company has also expanded its longstanding business relationship with Semiconductor Manufacturing International Corporation (SMIC), China’s largest and most advanced contract semiconductor manufacturer.
In December, SMIC announced that it produced Qualcomm’s Snapdragon 410 processor using advanced 28-nanometre wafer production process.
“The successful yield of 28nm process technology on high-performance, low-power Snapdragon mobile processors represents a major milestone for SMIC in increasing our competitiveness in the global foundry landscape,” SMIC chief executive Chiu Tzu-yin said in December.


Lenovo launches new batch of AI-capable PCs powered by Intel, AMD and Qualcomm processors

Chinese auto chip designer Black Sesame to raise up to US$143 million in Hong Kong IPO

China’s foldable smartphone market heats up with Samsung-ByteDance AI pact, Xiaomi launch

How China’s automated super factories are raising hopes for an economic revival

Qualcomm

After China fine, Qualcomm says it will mend ways

Qualcomm, the world’s largest supplier of mobile chips, agreed to pay the fine to end a 14-month long government probe. Photo: Bloomberg

Business

Companies

Smartphones