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Report: Qualcomm Facing $1 Billion Fine in China

By Staff Author | February 9, 2015

Qualcomm could be looking at a massive $1 billion fine in China to settle allegations of anti-competitive practices.

According to Reuters, the deal could be announced Monday and could also have Qualcomm reduce by one third the royalty rates it charges in China.

The fine would be the largest ever paid by a company in China, according to the report. A large portion of Qualcomm’s overseas revenue comes from licensing royalties. Reuters says that the on-going anti-trust investigation has had a negative impact on securing new deals.

Qualcomm suffered another setback earlier this year when reported surfaced that its Snapdragon 810 processor would not be a part of Samsung’s new flagship Galaxy S device for 2015. Still, Qualcomm said its newest high-end chipset will be in the new LG G Flex 2 and the Xiaomi Mi Note Pro. The company expects to land more smartphone partners in the coming months.

News of the record-setting penalty comes as Qualcomm is actively investing $150 million in semiconductor or semiconductor-related companies with business in China.

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