Technology is surrounded in legal disputes and the courts continue to review and issue decisions. Apple and Epic Games continue to jab at each other and it’s going to be an interesting few months down the line as each side argue their cases. The chip making space is no stranger to legal disputes and prominent chip maker, Qualcomm, are centre stage as pressure builds around its practices within the market. Regulation brings tough waters to brave as we see trade tensions build tides against Chinese tech firms including Huawei, Tencent and others. Qualcomm have continued to face similar storms as scrutiny over its antitrust have been under review.
Aggressive business tactics that brought about speculation over market competition suppression through strong arming and extortionate licensing models. Apple are in a similar situation with the state of the app store, though not entirely the same. Qualcomm argued its case meticulously and highlighted Apple’s migration to Intel was evidence of a fair market that is not monopolised by its business practices. With successive legal wins and boost in earnings, investors are standing behind the company as they push forward with further development into the next generation of chip making, 5G included.
The future for Qualcomm is stacked and their diverse streams of business are set to continue with substantial growth across the board. Legal concerns aside, Qualcomm are looking healthy and mobile development including areas such as AI devices, virtual reality, automotive and more. Technology in vehicles will be an area that will continue to expand as auto firms transition into various electric options, meeting connectivity demands of infrastructure and consumers. Connectivity with smart devices, roads and everything data related will be highly important moving forwards and Qualcomm is well placed to be the prime option for top auto makers in the coming years.
Car makers are not all happy with Qualcomm however. A number of automaker giants including Tesla, Honda, Ford and others wish to revisit the monopoly around the chip makers licensing policy that requires signing of patent licensing agreements before sales are made. It’s clear that Qualcomm have a strong foot in the space but whether the courts will enforce regulatory changes remains to be seen. Entry of other industries into the tech space brings turbulent waters once more but it’s clear that the chipmaker will continue to fight their corner and maintain a grip on their lead.
https://www.marketwatch.com/story/qualcomm-investors-are-underestimating-the-impact-of-the-chip-makers-legal-victory-2020-08-21
https://www.silicon.co.uk/e-regulation/legal/carmakers-urge-ftc-intervention-after-defeat-in-qualcomm-appeal-347295
