Qualcomm may consider splitting off its chip-making business
The past few years have been rocky ones for some heavyweights in the SoC industry. It wasn’t that long ago when NVIDIA was at the top of its game, and now its chips struggles to find homes. And more recently we’ve seen signs of trouble for Qualcomm, too, as controversy surrounds the Snapdragon 810 and companies like Samsung turn to in-house efforts for flagship handsets. With Qualcomm about to reveal its Q3 financial figures this week, new rumors suggest that the SoC-maker may be about to consider a big change to help improve its business outlook, splitting its operations as a maker of chips from those as a company that licenses patents.
Right now chip-making brings in the majority of Qualcomm’s revenue, but its patent business shows higher profits. Splitting the two might make the individual parts more attractive to companies looking to purchase them – and Intel in particular has been named as a firm that may be interested in acquiring Qualcomm’s chip-making arm.
But for the moment, none of this is official; Qualcomm’s financial report doesn’t come out until tomorrow. Still, sources suggest that the company considering a split is extremely likely, and even if it doesn’t go through with it, Qualcomm’s expected to take a nice, long look at its operations and do some serious soul-searching as it tries to maximize profitability.
Source: The Wall Street Journal