Qualcomm building in San Diego
A Qualcomm sign is pictured at one of its many campus buildings in San Diego. REUTERS/Mike Blake

Shares of Qualcomm jumped as much as 5 percent on Wall Street early Thursday morning after news of a deal between the Commerce Department and Chinese telecom giant ZTE.

ZTE, a maker of smartphones, is a major customer for the San Diego-based wireless pioneer’s chips but had faced a ban on purchases over national security concerns.

The deal announced on Thursday ends sanctions in return for paying a $1 billion fine and allowing a U.S. security team to monitor ZTE.

Qualcomm’s stock was up nearly 5 percent at the market opening, but than eased to about 2 percent later in trading. Shares were trading around $61, near the level during the Broadcom takeover battle.

Still at issue for Qualcomm is Chinese approval of its proposed merger with Dutch semiconductor company NXP.

Chris Jennewein

Chris Jennewein is Editor & Publisher of Times of San Diego.