© tom_schmucker dreamstime.com Business | April 15, 2019
The “meat” of Qualcomm’s business model on trial in San Diego
Apple Inc. and its allies square off in a jury trial today against chip supplier Qualcomm Inc. The trial, taking place in San Diego, seeks to determine whether Qualcomm has engaged in illegal patent licensing practices. The plaintiffs are seeking up to USD 27 billion in damages.
In a story filed by Reuters on Friday, and reported on previously in various media outlets, Qualcomm is alleging that Apple forced its longtime business partners to quit paying some royalties and is seeking up to USD 15 billion. Filed in federal court by Apple in early 2017, the lawsuit focuses on the modem chips that connect devices like the iPhone or Apple Watch to wireless data networks. Qualcomm has spent the past two years mounting a pressure campaign of smaller legal skirmishes against Apple, seekingꟷand in some cases winningꟷiPhone sales bans for violating its patents. For Apple, the trial is about the freedom to determine its own technology path for blockbuster products by buying chips without having to pay what it calls a “tax” on its innovations in the form of patent licensing fees to Qualcomm that take a cut of the selling price of its devices. For Qualcomm, the trial, along with similar allegations from U.S. regulators in a January court hearing, will determine the fate of its unique practice of mixing the sale of chips and licensing more than 130,000 patents. Gaston Kroub, a patent attorney with Kroub, Silbersher & Kolmykov, who is not involved in the case, told Reuters, “This is the day of reckoning that Qualcomm has been very fortunate to avoid for many years. In Apple, they’ve finally come up against a potential licensee that has the resources and the will to put Qualcomm’s business model and licensing practices on trial.” At center is Qualcomm’s practice that requires device makers to sign a patents license before it will supply chips, which it views as a commonsense measure to ensure it does not do business with companies violating its patents. Apple and other companies have called the “no license, no chips” policy a form of “double dipping.” In other words, Qualcomm is charging for the same intellectual property once during licensing discussions, and then again in the price of the chips where the patents manifest. Apple and allies are asking for an end to the double-dipping practice and a refund of about USD 9 billion, which may be tripled if the jury finds in Apple’s favor for antitrust allegations concerning contract factories such as Foxconn, who paid the royalties and were reimbursed by Apple. Apple alleges the practices kept Intel Corp. and other rivals like them out of the market for years. “Even very big companies like Intel have felt at a disadvantage,” said Michael Salzman, an antitrust attorney with Hughes Hubbard & Reed not involved in the case. Qualcomm’s position, according to the Reuters report, is that it has successful working relationships with contract factories prior to the release of the Apple iPhone. But Apple leveraged its strength in the industry to persuade factories to break their longstanding contracts with Qualcomm, which led to at least USD 7 billion in royalties lost, the chip supplier alleges. “I don’t think (a Qualcomm victory) would be great for Apple, but if it’s about money, they’ve got plenty of money,” said Stacy Rasgon, an equity analyst for Bernstein who follows Qualcomm. “For Qualcomm, it’s an existential attack on the meat of their business model.”
TSMC looking to create a local manufacturing hub – going beyond 2 nanometers The worlds biggest contract chipmaker is reportedly planning to make northern Taiwan its manufacturing hub for technologies that go beyond 2 nanometers.
Foxconn invests in SigmaSense Touch screen technology company, SigmaSense, has closed a USD 22 million Series A funding round led by Foxconn Technology Group.
Diodes gets green light for Lite-On acquisition from China Diodes Incorporated says it has received approval from the China’s State Administration for Market Regulation (SAMR) to proceed with its planned acquisition of Lite-On Semiconductor which was announced last year.
AT&S develops new solutions for autonomous driving Step by step, automated driving is increasingly becoming a feature of our mobility. With each step, increasing data volumes need to be processed fast to allow quick reactions to any given situation. AT&S is developing a robust and resilient interconnect concept for a high-performance computer chip.
Sponsored content by congatec AGThe Edge of the Future: Modular Edge Computing Industrial edge servers should be advanced enough to be able to successfully handle a broad array of tasks. In the 21rst century, virtual machines are being relied on more and more for consolidating different kinds of Industry 4.0 workloads. Moreover, because Computer-on-Modules offer the flexibility needed to scale the computing power of each application, users always end with the best of both worlds: a fair price and optimal performance.
Aurora Labs attracts $23 million in series B funding round Aurora Labs has secured USD 23 million in Series B funding from several automotive manufacturers, electronics and technology corporations and venture capitalists.
SCHOTT acquires INCOM’s MEGAdraw business SCHOTT North America, Inc. says it has successfully closed the acquisition of INCOM, Inc.’s MEGAdraw business.
Zinc8 team up with Vijai Electricals to explore JV opportunities Canadian battery technology company Zinc8 Energy Solutions, has signed an agreement in principle with Vijai Electricals Ltd from Hyderabad, India. The parties have agreed to explore joint-venture projects concerning the deployment of Zinc8's patented Zinc-Air Energy Storage System.
Intel names new SvP and Chief Strategy Officer Intel Corporation has appointed Safroadu (Saf) Yeboah-Amankwah as senior vice president and chief strategy officer. He will take on his new position on the first of November, 2020.
Edwards to set up centre in Dublin The development represents an investment of USD 5.7 million and will create 120 new jobs.
LEMO expands and inaugurates new production site About 400 metres from the company's main production site in St-Croix, Switzerland, LEMO has has just opened its new REDEL 2 production site
Vicor ink global distribution agreement with Arrow Vicor Corporation has expanded its Europe, Middle East and Africa relationship with Arrow Electronics, Inc. to a global distribution agreement.
Hemlock Semiconductor acquires DuPont TCS business The Michigan-based provider of ultra-pure polycrystalline silicon announces its acquisition of a DuPont business that makes trichlorosilane (TCS), the primary raw material used in producing the ultra-pure polysilicon HSC supplies to the semiconductor and solar industries.
Sponsored content by Nordson ASYMTEKConformal Coating Results — When You Need Better Than Just "Good Enough" Conformal coating contributes to product quality and reliability, but it is typically viewed as a process that tolerates sufficient results, or "good enough." That view is changing as more advanced and diverse electronic products enter the consumer marketplace, from the Internet of Things to self-driving vehicles.
Huawei opens 5G test centre in Serbia The company has officially opened its latest European centre for innovation and digital development and 5G test lab in Belgrade, Serbia.
First Sensor plans to sell its subsidiaries in USA and France to TE Connectivity Berlin-based First Sensor says it is planning to sell its US-based subsidiary in California, as well as its unit in Paris, France to TE Connectivity.
Silvaco acquires the assets of Coupling Wave Solutions S.A. EDA software and design IP supplier, Silvaco, has completed its acquisition of the assets of Coupling Wave Solutions S.A. (CWS), including IP, patents, and analysis technologies.
Nvidia / Arm deal dubbed as ‘disaster’ by Arm-cofounder The news that US-based Nvidia will acquire Arm from SoftBank Group in a USD 40 billion deal has already sparked some backlash within the industry. One of the vocal parties is Arm-cofounder, Hermann Hauser, who called the deal a disaster and said that it should be blocked.
Sponsored content by Mek (Marantz Electronics)3D AOI connectivity is exceptionally important, but what about inspection quality? 3D automated optical inspection (AOI) systems have become a critical component of production lines in electronics manufacturing Smart Factories as the hubs for quality control, giving valuable feedback to the production machines. But Smart Factories with AOI can only work if the AOI results are reliable…
Everlight criminally convicted for misappropriating Seoul Semi trade secrets LED technology supplier, Seoul Semiconductor, says that the Korean Suwon District Court convicted Everlight Electronics of criminal misappropriation of Seoul’s trade secrets.
It's official - NVIDIA to acquire Arm for $40 billion NVIDIA and SoftBank have entered into a definitive agreement under which NVIDIA will acquire Arm Limited from SoftBank in a transaction valued at USD 40 billion.
Tower Semi: 'all sites up and running following cyber attack' Tower Semiconductor says that all of its manufacturing sites are operational, and targeting full capability within the next few days, following the recovery from the cyber event a few days ago.
Jenoptik invests in new system from ClassOne Jenoptik has invested in a new Solstice LT electroplating system from semiconductor equipment manufacturer ClassOne Technology. The new system will be used for manufacturing semiconductor material for high-power diode lasers at Jenoptik's semiconductor production facility in Berlin-Adlershof, Germany.
MaxLinear acquires NanoSemi, Inc. MaxLinear, a provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits, has completed the acquisition of NanoSemi, a provider of IP that utilises patented machine learning techniques to improve signal integrity and power efficiency in SoCs, ASICs, and FPGAs used in next-gen communication and AI systems.
Delphi secures major power electronics business win The provider of automotive propulsion systems announces that it has secured a major Original Equipment Manufacturer (OEM) electrification business, driving profitable long-term growth.
Yamaichi Electronics' new European factory Japan-based group Yamaichi Electronics has been producing in Frankfurt (Oder), the only manufacturing location of the group in Europe, for almost 15 years. Now production is running out of space.
SnapEDA launches new KiCad plugin to help engineers design electronics faster Today, SnapEDA - a company that helps engineers design electronics faster by removing barriers - is launching a new KiCad plugin, allowing designers to search and download its computer-aided design (CAD) models directly within the KiCad PCB design environment.Load more news