Qualcomm is buying NXP

A Qualcomm company bus used to transport employees among its many buildings is shown in San Diego, California  November 3, 2015.    REUTERS/Mike Blake

via Reuters

Just one year after NXP bough Freescale, now they try to sell  to Qualcomm!

What is going on with this Semiconductor industry?

It’s long time not driven by engineering, innovations and products anymore, just shareholders and calculations what if we buy or sell this or that player in the field.

Qualcomm is well known name together with Mediatek they dominate mid-low end of the smart phone market, where Apple and Samsung share the high end.

Obviously their business is booming last years, they took also the Lion’s share of the tablet market where Chinese companies like Allwinner and Rockchip had some share, but the absence of RF in their SOC doomed them in the connectivity dominated world we live now.

What NXP can give to Qualcomm which they do not have yet is mystery for me. What will happen with Freescale and NXP products if Qualcomm buy them is also unpredictable.

Qualcomm do not publish any info for their products and they share just with few partners under strict NDAs. They are the opposite of how NXP and Freescale did their business so far with small users friendly approach.

What’s next? To promise to Qualcomm that will buy 100 000 pcs of future LPCxxx product to get the datasheet under NDA?

One is for sure imx.X is not going to be developed further as Qualcomm has plenty of competing products.


13 Comments (+add yours?)

  1. zoobab
    Sep 30, 2016 @ 12:41:05

    Qualcomm is also a huge patent troll and a prolific filer of dubious software patents. They have an aggressive patent enforcement bullying tactics against competitors, especially asian ones. They are a bully.


  2. cnxsoft
    Sep 30, 2016 @ 12:50:30

    I don’t think Qualcomm processor are used much in automotive and industrial applications. They only started to address the embedded market earlier this week with Snapdragon 410E and 600E processors that anybody can buy on Arrow.

    If they are serious about IoT they also need MCUs, and AFAIK currently they don’t have any.


    • Maximus
      Oct 09, 2016 @ 08:23:01

      Remember CSR acquisition by QC? CSR has quality IoT products. QC has combos for IoT. According to me, NXP acquisition is just to kill the competition.


  3. Brendan Simon
    Sep 30, 2016 @ 13:05:29

    So what are the safest alternatives to NXP and Freescale, if their products become unavailable?
    (Especially for small to medium qunatities) ??

    I’m thinking primarily ARM, but I guess there are other architectures affected too.

    ST, TI, others ??


  4. RiDeLub
    Sep 30, 2016 @ 13:31:19

    To jump into the IoT waggon a company will eventually need broad market support and community driven.
    This is what Qualcomm lacks and this will get with a new acquisition.
    NXP/Freescale are too strong brands to absorb so stay assured that they will not go away soon.

    Also, the industry goes to were the market leads.
    When the profit margins shrink and the market is saturated, there are mergers down to 2-3 big companies.
    There has been the case for every market in the past and this is the case now for the semiconductor industry.


  5. pboddie
    Sep 30, 2016 @ 18:39:26

    Didn’t Qualcomm acquire Atheros for RF expertise? Maybe everyone forgot about Atheros already.


  6. Ted Huntington
    Sep 30, 2016 @ 18:47:46

    I think if Qualcomm buys NXP, probably, in the long term, that spells the end (like for Atheros) of NXP and FreeScale.Certainly for the open-source hobbyist.


  7. Chris Tyler
    Sep 30, 2016 @ 21:02:25

    Qualcomm announced this week that the Snapdragon 410e and 600e will be available through distribution starting at quantity-1 (initially from Arrow, others to follow) and have a guaranteed 10 year availability. Press release at https://www.qualcomm.com/news/releases/2016/09/28/qualcomm-snapdragon-600e-and-410e-designed-embedded-computing-internet and Arrow page for 410e at https://www.arrow.com/en/products/apq-8016e-1-760nsp-tr-010/qualcomm … datasheet link is broken for me but it will have to follow.


  8. Bib
    Sep 30, 2016 @ 23:00:07

    Seems to me Qualcomm is concerned about his position on application processors for mobiles ; they will not able to maintain their technological advance any longer … so nowadays they are thinking about more mature, secure and traditional markets.


  9. koen
    Oct 01, 2016 @ 12:53:46

    There’s ‘growth’ in social media. Semiconductor manufacturing – not so much. The only way semi manufacturers can show ‘growth’ is with mergers and acquisitions. The investors put their money where they can make a quick profit: social media. Would you invest your savings in a startup with a new processor design? I wouldn’t. Those days have come and gone.


  10. mangel
    Oct 03, 2016 @ 09:05:13

    It’s all about politics.
    An european (dutch) company like nxp buying old motorola (freescale) american company is something that I think doesn’t like in USA. They’ve found another big american company to return the knowledge to the USA.
    With ARM holding sell out to japanese group, in a few months great part of the european expertise in integrated circuits has evaporated.


  11. Ivan
    Oct 03, 2016 @ 11:28:49

    Ha ha, actually NXP is buying Qualcomm I think. That Reuters article is another journalist interpreted bullshit I think.


  12. dbdavidtwn
    Oct 04, 2016 @ 10:42:07

    As I know from Taiwan, NXP has lots of ADAS applications design wins (also in China); but Qualcomm has not! Automotive should be the next booming market fro Qualcomm (also Mediatek)!


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