Qualcomm had previously submitted a United States dollars 44 billion bid for rivals NXP Semiconductors only to see the bid declined by Chinese regulators amid the escalating trade war between China and USA, making the company a victim of the dispute.
Recently U.S. President Donald Trump and Chinese President Xi Jinping agreed on a 90-day truce on additional tariffs as both sides are looking to de-escalate tensions in a trade war that is proving damaging to both.
Qualcomm said it's not interested in reviving its collapsed acquisition of NXP Semiconductors. "Restarting the acquisition of NXP will help Qualcomm effectively disperse future operational risks without betting fully on smartphones", said Yao, adding that he believes the restart of the NXP deal should still be under consideration at Qualcomm despite its assertion the deal had been terminated as the deadline had expired.
But in a media statement, Qualcomm said the deadline for the planned transaction has expired, and the company now "considers the matter closed", with no intention of reviving talks.
Qualcomm, the world's biggest smartphone-chip maker, walked away from its agreement to buy NXP in July, after failing to secure Chinese regulatory approval.
In addition, Qualcomm has already moved ahead with a $30 billion stock buyback in the wake of the original acquisition failure, with $21 billion already spent, "making it significantly more hard to re-engage on a deal", said Rasgon. NXP declined to comment. The American chipmaker therefore had to pay a so-called "break-up fee" of 2 billion dollars to NXP. It spent $22.6 billion on buying its own stock in the 12-months ended September, using up cash reserves that had been intended for the NXP acquisition. Now, chip companies may be more optimistic about their regulatory chances in China.
A Qualcomm representative didn't immediately respond to a request for comment.
"If that deal came back to him, he would most likely approve it quickly, which is a big thing", said Trump according to reports from Buenos Aires. But, as USA and China relations deteriorated, the Chinese government later claimed they would block the deal, and Qualcomm announced that they were abandoning the effort this year.