Qualcomm Expands Nuvia Technology Portfolio

Qualcomm Expands Nuvia Technology Portfolio


Natalia Solovieva | 01/26/2021

Qualcomm Expands Nuvia Technology Portfolio

Qualcomm has acquired Nuvia startup. The deal is worth $ 1.4 billion. Qualcomm’s management expects Nuvia’s technology to expand the capabilities of its microprocessors and
successfully use them in 5G projects.

The official information about the agreement is posted on the official Qualcomm website.

Nuvia is a division of VINCI Construction, which in turn is part of the VINCI Group. The company was founded in early 2019 by three former top Apple executives –
Gerard Williams III, Manu Gulati and John Bruno. All of them, according to sources, were responsible for the production of chips in iPhone smartphones.

According to experts, this circumstance deserves special attention. The IT community has watched over the past few years patent disputes between Apple and Qualcomm, one of the leading
its suppliers. So, in early 2017, Apple filed a lawsuit against Qualcomm, accusing it of overstating the selling price of its chips for almost 6 years and illegal enrichment, and demanded $ 1
billion in damages. Qualcomm contested the claim.

A few days later, Apple filed a lawsuit against Qualcom in the Chinese court. The amount of the claim was more modest – only $ 145 million, the claims are similar. A few more weeks later, the lawsuit was received
and to a UK court. Qualcomm contested all of these claims, accusing the plaintiff of deliberately distorting the terms of the agreement, which were standard for all of its partners, and unwillingness to pay adequately
use of the intellectual property of the chip manufacturer. And then she filed a retaliatory lawsuit against Apple for using only the basic functions of Qualcomm chips in iPhone 7 phones and understating them.
test results.

There were several more litigations, they lasted for a number of years and brought significant losses to both parties. For example, Qualcomm had to pay a fine for violating antitrust
legislation in Europe, and Apple was banned from selling a number of iPhone models with Qualcomm technologies in China and Germany, for which at the end of 2018 the corporation paid a sharp decline in the share price by
34% and a fall in capitalization.

In 2019, opponents decided to make up. Apple paid the former supplier about $ 4.5 billion in compensation, after which they signed a new licensing agreement. On this news, the shares of both companies
grew up well.

Qualcomm’s new acquisition, startup Nuvia, is also developing its own processors. Now Qualcomm will use Nuvia technologies to develop its own mobile SoC platform
Snapdragon will further “strengthen its leadership”, provide incremental improvements in processor performance, power efficiency, and position Snapdragon as the platform of choice
for use in 5G generation communication projects.

“Building high-performance, low-power processors and highly integrated SoCs is part of our DNA,” said Jim Thompson, Chief Technology Officer, Qualcomm. –
The integration of Nuvia processors with Snapdragon will take computing performance to the next level and expand the capabilities of products serving a variety of industries. ”

As part of the deal, Nuvia executives and employees will join Qualcomm’s team of experts.

“5G, the convergence of computing and mobile architectures, and the penetration of mobile technologies into other industries are all great opportunities for Qualcomm. The Nuvia team consists of proven
specialists with extensive experience in creating advanced technologies and products. Their merger with the Qualcomm team will empower our entire partner ecosystem to drive innovation and deliver a new class
products and technologies for the 5G era, ”said Cristiano Amon, President of Qualcomm Inc.

However, there will also be changes in the top management of the parent company – for example, Steven M. Mollenkopf, CEO and board member of Qualcomm, this summer.
is going to leave his post in the company after 26 years of work. His chair will be taken by Cristiano Amon.

Qualcomm’s partner executives, commenting on the upcoming merger with Nuvia, see it as a great opportunity to expand the potential of their products.

“Compute performance and energy efficiency are among the critical ingredients that make billions of Android and Chrome devices shine brighter than the sun. Technology connectivity
Nuvia is expanding Qualcomm’s capabilities in these three areas and we look forward to seeing the next generation of Snapdragon, ”said Hiroshi Lockheimer, senior vice president of platforms and
ecosystems of Google.

“From the joint Nuvia and Qualcomm team, we look forward to continuing innovation and exciting new experiences. Qualcomm’s commitment to platform technology will enable us to
offer premium smartphone performance to users around the world, ”said Roh Tae-moon, President and Head of Mobile, Samsung Electronics.

“The automotive industry is a new segment taking advantage of mobile innovation and Qualcomm has always been at the forefront of this. We welcome integration
Nuvia technology and will continue to work with Qualcomm to deliver world-class vehicle services and experiences, ”said Thierry Cammal, Vice President, Alliance Global
Software Factory.

Mergers and acquisitions

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