U.S. mobile chipmaker Qualcomm announced on August 10 that it has settled an anti-trust case with Taiwan’s Fair Trade Commission(TFTC). Qualcomm paid out for a total of $93 million, which was reduced from $774 million. It further pledged to invest $700 million more in Taiwan within the next five years.
Qualcomm was asked for a fine totaling NT$23.4 billion ($774 Million) last October as the TFTC ruled that the San Diego-based tech giant had imposed monopoly over the chip market for modem technologies providing wireless data connectivity for mobile phones, and refused to license its technology to other industry players.
The fine supposed to be paid off in 60-month installment spanning a lengthy five-year timeframe was the heaviest imposed on a single company since the inception of the regulator in 1991.
“We are pleased to have reached a mutually beneficial resolution with the TFTC that puts the litigation behind us,” said Alex Rogers, executive vice president and president of Qualcomm Technology Licensing, “this settlement directly addresses concerns raised by the TFTC, regardless of disputed positions, and builds on our foundation of collaborative, long-term business relationships in Taiwan.”
“We are happy to reaffirm our commitment to licensing our valuable intellectual property under principles of fairness and good faith. With the uncertainty removed, we can now focus on expanding our relationships that support the Taiwanese wireless industry and rapid adoption of 5G technology.”
As part of the resolution, Qualcomm also pledged in its statement to roll off investment and research and development initiatives in Taiwan over the next five years. The investment is for the benefit of the mobile and semiconductor ecosystem, SMEs and consumers, which entails 5G collaborations, R&D, local operations and more.