After China imposed a fine of 6 billion yuan on Qualcomm's anti-monopoly penalty, South Korea also recently imposed an anti-monopoly penalty of 5.9 billion yuan on Qualcomm. Currently, Europe is conducting an anti-monopoly investigation on Qualcomm, which shows that Qualcomm The tax model is no longer sustainable.
Qualcomm is the current global mobile phone chip overlord, and its status today has a lot to do with its “high-pass tax†charging model. When Qualcomm purchased the CDMA patent from interdigital, it solved the key technical problems such as power control and successfully put it into civilian use. However, in the early days, all parties were not optimistic about the development of CDMA. In the 2G era, GSM is the most popular technology in the world, so Qualcomm Had to continue to improve CDMA alone and finally obtained the monopoly patent status of the technology.
Later, in the 3G era, WCDMA, CDMA2000, and TD-SCDMA all use CDMA as the core technology. Qualcomm has a supreme patent status for 3G. All companies using 3G technology must pay royalties to Qualcomm, and it has gained extreme Favorable position.
Qualcomm’s licensing agreement with the parties at the time of selling the chip does not allow the licensor to publish it. The European antitrust investigation believes that it may charge less patent fees for companies that use Qualcomm chips, while companies that use other chip enterprise chips It is required to pay a higher patent fee, so it has won a favorable position in the chip market, helping it gradually occupy a monopoly position in the mobile phone chip market, while other mobile phone chip companies are gradually declining.
After entering the 4G era, all parties around the world hope to get rid of the influence of Qualcomm and bypass Qualcomm's patents. China-EU cooperation has launched the LTE standard. Qualcomm's 4G technology UMB has failed to develop, resulting in its patent advantage over the 4G standard compared to 3G. The times have been greatly weakened.
The rise of the communications industry in China and South Korea has a growing patent discourse. China's Huawei and ZTE have become the world's top four communications equipment companies. Their patent rights in 4G continue to increase. South Korea's Samsung has become the world's largest mobile phone brand. According to relevant statistics, it ranks among the top three in terms of 4G core patents. It is Qualcomm, Huawei, and Samsung, so they hope to lower the "Qualcomm tax" and no longer want to be charged by Qualcomm for expensive patent fees.
It is under such circumstances that Europe, China and South Korea have launched anti-monopoly investigations on Qualcomm to reduce or even cancel the “high-pass tax†charging model, in which China has successfully requested Qualcomm to calculate 65% of the whole machine. The GSM/TD-SCDMA/TD-LTE charges are only 3.5% and the five models are charged at 5%. This time, Korea’s anti-monopoly penalties for Qualcomm will also limit Qualcomm in terms of fees.
Samsung is the world's largest mobile phone brand. The annual shipment of mobile phones accounts for more than 20% of the global market, and it has begun to show strong competitiveness in the chip. Last year, the first integrated baseband SOC chip Exynos8890 was launched, hoping to communicate with Chinese mobile phones. Cooperating to sell mobile phone chips to them and become a competitor with Qualcomm. Under such circumstances, if the successful cancellation or reduction of "Qualcomm tax" will benefit the development of Samsung chip business, it is also purchasing a large number of Qualcomm chips.
In any case, with the continual weakening of Qualcomm's patent advantages in 4G and 5G, and the increasing competitiveness of all parties, after all countries have Qualcomm's anti-monopoly investigation penalties, “Qualcomm Tax†continues to be charged according to the current model. Sustain, change is inevitable.
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