San Diego-based Qualcomm Inc. announced Monday it will pay $975 million in fines to settle an investigation by China over product licensing.
The maker of chips for mobile devices said it will not fight a ruling by China’s National Development and Reform Commission that it violated the country’s anti-monopoly law. The company said it was disappointed by the order but would modify some of its business practices to comply with China’s regulation.
“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,” said Steve Mollenkopf, CEO of Qualcomm.
“We are pleased that the resolution has removed the uncertainty surrounding our business in China, and we will now focus our full attention and resources on supporting our customers and partners in China and pursuing the many opportunities ahead,” he said.
Qualcomm officials said last year that the investigation was preventing the company from signing new licensing deals.
The company said it would continue to help China’s mobile operators in rolling out their 4G LTE networks in China, work with Chinese handset manufacturers to build their businesses both inside and outside of China, and expand a relationship with Semiconductor Manufacturing International Corp., one of China’s largest and most advanced semiconductor foundries.
Qualcomm said it would also create a $150 million investment fund for companies in China to develop mobile and semiconductor technologies. Qualcomm announced in December that $40 million had already been spent on financial, marketing, technology and business support to the companies.
The company, which announced last year that it was reducing its global workforce by 600 positions, has accused some Chinese partners of under- reporting sales to reduce royalty payments.
— City News Service
