Qualcomm is a leader in the development of 5G chips. It first developed the X16 baseband supporting 1Gbps. It is also the world's first to develop the 5G baseband Snapdragon X50. Its technical strength is undoubted, but this has not stopped it in 4G and The decline in the right to speak on the 5G standard.
3G standard Qualcomm has obtained a monopoly patent status by monopolizing CDMA technology. All enterprises using 3G technology need to pay royalties to Qualcomm. Qualcomm has gradually become the mobile communication leader and has been established as Qualcomm Tax's patent charging model.
Among the agreements between Qualcomm and the terminal companies, some companies believe that the Qualcomm tax paid by Qualcomm chips will be more favorable. The EU’s antitrust investigation of Qualcomm believes that it has established an unfair competitive advantage, leading to European chip companies. In an unfavorable competitive position, Qualcomm's chip business gradually occupied most of the global market share, while other chip companies gradually declined.
Entering the 4G era, Qualcomm's UMB competition for 4G failed. The LTE launched by China and Europe became the only 4G standard. As a result, Chinese and European companies' voices in the 4G standard rose, and Qualcomm's patent advantage was weakened.
Although the current 5G standard is still under development, Qualcomm’s voice is undoubtedly being further weakened. The 5G standard will be based on European LTE-FDD and China's TD-LTE evolution, which means that China and Europe will further enhance their voice in the 5G standard. In the recent coding battle, China's main push Polar Code (polarization) The code) scheme becomes the 5G control channel eMBB scene coding scheme, which proves that China's 5G standard discourse right is further enhanced.
In order to continue to maintain the “Qualcomm Taxâ€, Qualcomm emphasizes that 4G is not operated alone. In the current environment, 2G, 3G, and 4G networks will exist at the same time, and it is required to bundle patent fees. This strategy has been successful so far because the world still exists at the same time. With 2G, 3G, and 4G networks, products launched by communications companies need to support these three generations of technology standards.
However, with the improvement of global coverage of 4G, 2G and 3G are gradually withdrawing from the market, US carriers have gradually shut down 2G and 3G networks, and China Telecom, a network operator operating CDMA in China, has decided to adopt 800MHz spectrum construction for 3G networks. 4G network, which means that its 3G network will gradually close, China Mobile is promoting the development of VOLTE based on 4G technology.
Under such circumstances, most operators in the future will only operate networks based on 4G and 5G standards at the same time. In the future mobile communication technology, 3G technologies no longer exist at the same time, Qualcomm intends to bundle 3G patent charges through Qualcomm. The tax will inevitably have to undergo a major change, or even continue.
In the case that the patent charging model is not sustainable, its leading position in chip technology alone cannot guarantee that it will continue to maintain its dominance. In 2014, after commercial 4G in China, only Qualcomm and Marvell launched 4G chips in the first half of the year. In the second half of the year, MediaTek and Huawei HiSilis launched their 4G chips. Last year, Huawei HiSilicon led Qualcomm to launch baseband supporting LTE Cat12/Cat13 technology. Huawei has also launched a 5G communication device for testing. It is estimated that it will not lag behind Qualcomm in 5G baseband research and development.
Therefore, in the 5G era, Qualcomm's chip dominance will be greatly challenged. It has also foreseen this prospect, and hopes to gain new development opportunities in the field of ARM architecture server chips and Internet of Things.
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