A very interesting read.................

https://www.semiwiki.com/forum/content/4871-open-letter-qualcomm-ceo.html

Partner instead of straight M&A – I understand, you want to diversify to bring higher returns to your investors. This can be done in more creative ways than acquiring a company. There are rumours about Qualcomm acquiring AMD to get into server business. This is a good strategy as it augments well with your IoT plan which is gaining strength on Gateway side and the server business can let you enter into the Cloud. However in my view, acquiring AMD and wielding it against Intel to win in the server business could be a long haul.

Similarly, there are other companies being talked about to be the acquisition targets of Qualcomm. Also, QCT is being talked about as the acquisition target of Intel. I would not go into those details here. My simple suggestion to you would be on the following lines –

Identify your immediate battle ground, it’s not server business, it’s China region which is key to mobile processor business today. The mobile business is QCT’s backbone. So, protect that. What’s the key issue there? It’s price war. Who are the main players? They are you, Intel, Spreadtrum and MediaTek. You know your main rival there. Now identify a player among the others who is strong and may need your help. There you go.

Intel too wants to cut the pie in the mobile market. They are aggressively following the China market, rightly. However, they are losing substantial dollars in the mobile business. Given a favourable deal, in my opinion, they should be willing to pursue. Qualcomm has the mobile technology, but you need to cut cost. You have a chance to share mobile technology with Intel and get into manufacturing pact with Intel to cut cost. Both companies can make it a win-win here in the mobile business. Eventually, you will have an answer for your high-end turf in the mobile business too. Today, the route for mobile business starts from China!