Chip giant Qualcomm wins Taiwan reprieve as global antitrust battle rages

Qualcomm, the smartphone chip maker fighting regulatory actions and lawsuits threatening its most profitable business, has reached a settlement with Taiwan’s antitrust regulators that reverses most of a US$773 million fine.

As part of an agreement announced on Friday by the Fair Trade Commission (FTC), the American semiconductor and telecommunications equipment company will invest US$700 million over the next five years and boost research activities in Taiwan, home to a clutch of major suppliers to global technology players such as Apple.

In return, Qualcomm can stop paying fines and retains the right to charge manufacturers royalties on its technology. The commission said on Friday it will keep NT$2.73 billion (US$89 million) in fines that Qualcomm has already paid, but waive the rest.

Taiwan’s decision reverses one of a number of actions taken against Qualcomm in recent years that investors worry will destroy its patent-licensing business, a unit that generates most the company’s profit.

Qualcomm has argued that such moves are part of a global push by Apple to elicit government support for its legal fight with the chip giant. The iPhone maker is suing Qualcomm for antitrust violations, alleging the San Diego-based company unfairly leverages its market position in modem chips, and has said regulatory actions worldwide show its claims are justified.

Qualcomm still faces multiple lawsuits brought by Apple, as well as actions and investigations in the European Union and the United States.