CEO of Qualcomm ,Paul Jacobs said yesterday that he would not support the company's self-built production plants, or to spend large amounts of cash to ensure availability of sufficient number of chip components. Jacobs said in news conference in San Diego yesterday, Qualcomm is considering to adopt different business arrangements and increase investment for suppliers. "If these measures are necessary in the future, I will not veto them." Jacobs said ,Qualcomm is more willing to let other foundries to manufacture their own chips rather than choosing their own construction of a production factory. " "Factory construction is not a high priority thing, but I will not completely rule out the possibility," Jacobs said. Qualcomm is the largest chip design company, the company does not have the processing plant. But with the demand for smart phones in recent years, increased dramatically, component suppliers have a number of challenges to maintain adequate supply side . In order to guarantee they always have access to adequate supplies, such Apple giants usually pay hundreds of millions of dollars to the foundries. " Direct response of the establishment of processing plants by Qualcomm to investors will be negative because it will change the operating mode." MKMPartners's analyst, Daniel Berenbaum said, "but by paying cash to lock the component supply is a wise choice. " |
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Qualcomm May Build Self-chip Processing Plant