San Francisco, July 26: San Diego-based chipmaker Qualcomm has walked away from buying Dutch firm NXP Semiconductors for $45 billion after the Chinese regulators did not grant last-minute approval to the deal.
The two companies entered into a deal in October 2016, with the deadline to close the deal extended several times as the companies waited for China to approve or deny the merger.
Eight of the nine countries where Qualcomm has businesses had approved the deal.
With no answer from China's Ministry of Commerce as the deadline passed (it was 9.30 a.m. Indian time on Thursday), it was clear that the merger was officially dead.
"We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments," Steve Mollenkopf, CEO of Qualcomm Incorporated, said in a statement late on Wednesday.
"In addition, upon termination of the agreement, we intend to pursue a stock repurchase program of up to $30 billion to deliver significant value to our stockholders," he added as the company announced results for its fiscal third quarter that ended June 24.
However, Qualcomm will shell out a break-up fee of $2 billion to NXP Semiconductors that makes automotive, security and Internet of Things (IoT) solutions.
The chip-maker reported revenue of $5.6 billion, saying the revenue in the third quarter grew four per cent year-on-year. The net income was $1.2 billion.
"We reported results significantly above our prior expectations for our fiscal third quarter, driven by solid execution across the company, including very strong results in our licensing business," Mollenkopf said.
The company also announced that it does not expect to supply wireless chips for upcoming iPhones.
Qualcomm is a major supplier of 4G chips for smartphones.
According to CNET, Apple has been using Intel 4G chips for some iPhone models and Qualcomm chips for others.
"We believe Apple intends to solely use our competitor's modems rather than our modems in its next iPhone release," Qualcomm Financial Chief George Davis was quoted as saying.
Apple and Qualcomm have been fighting over patents since the beginning of 2017.
"Qualcomm didn't say which company will supply modems for the next iPhone, but it is believed to be Intel," the report added.
With iPhone 7 and 7 Plus launch in 2016, Apple began using Intel chips in some variants of iPhones.
However, some media reports said Apple has reportedly conveyed a message to Intel, saying it will not be using the chip-maker's 5G modems for 2020 iPhone models.
Earlier reports suggested that Apple was turning to Taiwanese mobile chipset maker MediaTek for its communications components and that the California-headquartered tech giant was looking to move away from using Intel processors altogether by 2020.
Apple started using Intel components in modern iPhones as it wanted to reduce its dependence on chips from Qualcomm, with which it got entangled in a long legal battle.
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Lucknow (PTI): Denied a ticket from Pilibhit Lok Sabha seat, BJP MP Varun Gandhi on Thursday wrote an emotional letter to the people of his constituency in which he asserted that his relationship with them will remain intact till his last breath.
Sharing the letter on X, he said, his relationship with Pilibhit is one of love and trust which is far above any political calculations.
The BJP has fielded Uttar Pradesh Public Works Minister Jitin Prasada from Pilibhit replacing Gandhi, who has been vocal against his own government several times on the issue of inflation and unemployment.
Prasada had filed his nominations on this seat on Wednesday.
Recounting his association with the constituency, he said "Today, when I am writing this letter, countless memories have made me emotional. I remember that little three-year-old child who came to Pilibhit for the first time in 1983 holding the fingers of his mother. Little did he know that one day this land would become his work place and the people here would become his family".
"The ideals given by Pilibhit were instrumental in my upbringing and development not only as an MP but also as a person. Being your representative has been the greatest honour of my life and I have always raised my voice for your interests to the best of my ability," he said.
Varun Gandhi said his tenure as an MP may be coming to an end, but his relationship with Pilibhit can't end till his last breath.
"If not as an MP, then at least as a son, I am committed to serve you throughout my life and my doors will always remain open for you as before. I came into politics to raise the voice of the common man and today I seek your blessings to continue doing this work always. Even if I have to pay any cost for this," he added.
This is for the first time in over three decades that the mother-son duo of Maneka and Varun Gandhi will not be in the fray from the Pilibhit constituency which is located in the Terai belt bordering Nepal.
The denial of ticket to Varun Gandhi this time did not come as a surprise as he has been criticising the BJP on the issues of farmers, health and jobs.
After he was replaced by Prasada, reports did the rounds that Varun Gandhi might contest from the seat as an independent candidate. The suspense ended on Wednesday when he did not turn up before the nominations ended.
His mother Maneka Gandhi, the sitting MP from Sultanpur, was, however, given another chance from the same seat by the BJP.
The Pilibhit seat has remained with Maneka Gandhi or her son Varun Gandhi since 1996.
Maneka Gandhi won the seat on a Janata Dal ticket in 1989, lost in 1991 and won again in 1996. She won from the constituency in 1998 and 1999 as an Independent candidate. She won the seat in 2004 and 2014 as a BJP candidate.
Varun Gandhi won the seat in 2009 and 2019 as a BJP candidate.
प्रणाम पीलीभीत 🙏 pic.twitter.com/D6T3uDUU6o
— Varun Gandhi (@varungandhi80) March 28, 2024