Qualcomm CEO: Buying NXP Puts Us in Strong Position

The transcript discusses Qualcomm's strategic acquisition of NXP, highlighting the importance of expanding into the automobile and IoT sectors. It addresses the integration challenges, especially given NXP's recent acquisition of Freescale, and emphasizes the expertise NXP brings. The discussion also covers the business model shift towards owning fabs and the cultural alignment between Qualcomm and NXP. Financial aspects, including the all-cash deal and its impact on Qualcomm's credit rating and shareholder returns, are also explored.

What are the key sectors Qualcomm is focusing on with the NXP acquisition?

• Healthcare and Education

• Retail and E-commerce

• Automobile and Internet of Things

• Finance and Banking

What is the main risk associated with the Qualcomm-NXP deal?

• Product development

• Integration of companies

• Market competition

• Regulatory approval

How does Qualcomm view NXP's business model in relation to its own?

• Completely different and incompatible

• Similar and easily integrable

• Different but complementary

• Identical in all aspects

What financial strategy is Qualcomm employing for the NXP acquisition?

• Crowdfunding

• Seeking government funding

• Issuing new shares

• All-cash deal with new debt

What is Qualcomm's plan regarding its credit rating post-acquisition?

• Seek external validation

• Let it decline temporarily

• Maintain and improve it

• Ignore it completely

How does Qualcomm plan to handle its offshore cash in relation to the acquisition?

• Invest in new projects

• Use it for the acquisition

• Convert it to local currency

• Distribute it as bonuses

What is Qualcomm's approach to shareholder returns during the acquisition process?

• Continue and grow dividends

• Reduce dividends significantly

• Suspend all returns

• Focus solely on stock buybacks