Skip to main content

Election 2020: Get Your Ballot Ready With The KPBS Voter Guide

$47B Deal Could Help Qualcomm Move From Phones To Cars

Photo credit: kelemenop / Flickr

The Qualcomm building in San Diego is pictured in this undated photo.

Qualcomm announced the largest deal in its history on Thursday. The San Diego company will acquire Dutch chipmaker NXP Semiconductors in a deal totaling $47 billion.

"This is a huge deal," said Linley Gwennap, a semiconductor industry analyst with The Linley Group.

"These are two big, very successful semiconductor companies that are combining forces in order to address a very broad range of new markets."

By purchasing NXP, Qualcomm buys itself a portfolio of chips that NXP has already successfully placed in cars and other Internet-connected devices. NXP also makes technology involved in mobile payment systems like Apple Pay.

Gwennap thinks the deal will help Qualcomm expand beyond the sluggish smartphone market and into growing fields like connected cars and the Internet of things.

"We're seeing very small growth in smartphone sales this year," he said. "So Qualcomm is seeking other opportunities to increase their revenue in the future."

Qualcomm expects the combined company to see annual revenues topping $30 billion.

Correction: A previous version of this story mistakenly referred to Linley Gwennap as an analyst with the Gwennap Group. The name of his firm is The Linley Group.

FEATURED PODCAST

San Diego News Matters podcast branding

KPBS' daily news podcast covering local politics, education, health, environment, the border and more. New episodes are ready weekday mornings so you can listen on your morning commute.

Curious San Diego banner

Want more KPBS news?
Find us on Twitter and Facebook, or sign up for our newsletters.

To view PDF documents, Download Acrobat Reader.