① Qualcomm executives said they have a “positive” attitude towards the incoming Trump administration and are not worried that tariffs will affect their business in China. Chinese companies are buying their car chips; ② Qualcomm CEO Amon said that Trump's last round of tariff policies did not hurt Qualcomm, and the partnership between Qualcomm and China has increased. ③ Qualcomm expects total revenue from the product business other than smartphone chips to reach $22 billion in the next five years.
Financial Services, November 20 (Editor: Liu Rui) On Tuesday EST, Qualcomm executives said at an investor event that Qualcomm has a “positive” attitude towards the incoming Trump administration and is not worried that the US plan to impose tariffs on China will affect its business in China.
Currently, nearly half of Qualcomm's revenue comes from China. This statement reflects Qualcomm's optimism about the future.
Qualcomm will maintain a good relationship with the Trump administration
In a Q&A session with analysts, Alex Rogers (Alex Rogers), who is in charge of Qualcomm's technology licensing business, said that during Trump's last administration, Qualcomm had a “good relationship” with the Trump administration at the time.
During Trump's last term, the Trump administration also blocked rival Broadcom's hostile takeover of Qualcomm.
“We look forward to the relationship moving forward. “We are very positive about the recent election of Secretary of Commerce,” Rogers said of Howard Lutnick (Howard Lutnick), who Trump is expected to nominate as Secretary of Commerce. “So we look forward to a good relationship with Trump's new administration, just like we did with Trump's previous administration.”
Trump is not expected to affect business in China
In response to another analyst's question, Qualcomm CEO Cristiano Amon (Cristiano Amon) said that he does not expect problems with the development of the business in China. The Chinese market accounted for 46% of Qualcomm's revenue of nearly 40 billion dollars in the most recent fiscal year.
Earlier, Trump had proposed plans to impose a 60% tariff on imported goods from China, and many economists had warned that this could cause the US to suffer retaliatory tariffs.
In response, Amon said that Chinese companies are buying Qualcomm's car chips, and the last round of tariffs imposed by Trump on Chinese goods did not hurt Qualcomm.
Amon said, “In a context where geopolitics are beginning to become the focus of dialogue between China and the US, Qualcomm's partnership with China has actually increased as we have expanded to industries other than smartphones.”
Qualcomm's stock price remained largely unchanged in after-hours trading after the above remarks were made.
Efforts are being made to diversify products
Qualcomm is currently the world's largest supplier of mobile phone chips, but at the same time, the company has been committed to diversifying its products.
Currently, Qualcomm has cooperated with many car companies, including GM, to provide chips for car dashboards and driver assistance systems, and is cooperating closely with Microsoft to compete with Intel, AMD, etc. in the laptop market.
Qualcomm predicts that in the next five years, in addition to the smartphone chip business, total revenue from the laptop, automobile, and other product businesses will reach 22 billion US dollars, a significant increase from the previous fiscal year.
Qualcomm said it is expected that by the 2029 fiscal year, Qualcomm's annual revenue from automotive chips will reach 8 billion US dollars, personal computer revenue will reach 4 billion US dollars, and the AR/VR headset chip business will bring in revenue of 2 billion US dollars. Additionally, in the Industrial Internet of Things (IIoT) and Internet of Things (IoT) sectors, revenue is estimated at $4 billion each.
