Silex Unwired

Qualcomm Announces Termination of NXP Acquisition


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nxp qualcomm acquisition

Nearly two years after Qualcomm Inc. announced its intention to acquire NXP Semiconductors NV, Qualcomm has officially announced that the merger is dead.  Regulators in eight other countries approved the merger. China remained the lone holdout. The Qualcomm-NXP combination appears to become entangled in the Trump administration’s tariffs on a rising number of Chinese imports and that country’s steps to retaliate.

What does this mean to you?

  • Both companies are fundamentally strong as independent companies. Qualcomm is the market leader in providing technology for smartphones (including Wi-Fi technology).  NXP is the market leader for enabling “Smart” car applications.  Both companies are expected to retain their dominant position in these markets.
  • During the past two years, the companies developed executive relationships and identified opportunities for collaboration. One obvious area is to enable NXP application processors and microcontrollers with Wi-Fi connectivity.  I would expect these initiatives to continue.
  • One of the key reasons that Qualcomm wanted to acquire NXP was to expand their small tier 1 customer base into the broader market that NXP serves. Without the acquisition, Silex Technology may become an even more important enabler of the Qualcomm mass market strategy.

Look for several announcements in the coming months about how Silex Technology embedded wireless modules based on Qualcomm technology can help NXP customers add Wi-Fi to their product. 

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