Popular US-based mobile chip maker Qualcomm could still reconsider a move to buy NXP after Chinese President Xi Jinping’s statement at the G20 Summit that the matter could be revisited, suggests an analyst for TrendForce based out of Taipei. Qualcomm gave up all hopes for the deal recently when China blocked the move amidst escalating tensions between the US-China Trade war back in July this year. The saga started back in October 2016 when Qualcomm made a successful $38 billion bid for the semiconductor maker. However, in the months that followed, unforeseen issues such as shareholder backing arose prolonging the deal to be completed successfully. In July 2018, the deal finally fell apart when China disapproved the deal. Since Qualcomm has significant ties with Chinese OEMs, the chip maker had no choice but to agree with China’s decision.

Now, Yao, senior analyst at TrendForce says that Qualcomm could be forced to reconsider the move even after backing out because of unimpressive mobile chip sales this year. Most big smartphone markets like the US, China, and India are almost fully saturated and the world number one chip maker will be forced to look into new avenues for the coming decade. Unlike smartphones, the automotive chip industry has a huge amount of untapped potential. With NXP being the biggest supplier to the industry, Qualcomm could be forced to reopen the deal amidst a grim outlook for the mobile chip industry in the coming months.

A recent study by Allied Market Research forecasted the autonomous vehicle industry could grow to US$54.23 billion by 2019 and potentially to US$556.67 billion by 2026 with a 40 percent compound annual growth rate. On the other hand, the global smartphone shipments shrunk by 6 percent Y-o-Y in the Q3, 2018.

(Via)

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About a week ago, the leaders of Qualcomm met with Broadcom’s team to discuss the $121 billion acquisition offer. While the results of that meet have not been made public, Broadcom now has a new offer for Qualcomm’s acquisition.

Broadcom has shaved off $3 per share from its takeover bid for Qualcomm, reducing the share’s pricing to $79 a share. However, the price still remains nearly 13 percent above Broadcom’s original offer of $70 per share.

This new offer comes after Broadcom objected to Qualcomm’s decision to raise its own bid for the acquisition of NXP Semiconductors to $44 billion. In response to this new offer, Qualcomm said that Broadcom had made “an inadequate offer even worse”.

Qualcomm increased its offer price for NXP to $127.50 a share from $110 to increase support for the deal among NXP’s shareholders. The move seems to have worked as the company said that investors who roughly control about 28 percent of NXP’s shares, who had opposed the company’s initial offer as being too low, have now agreed to tender their shares.

Under the new terms agreed with NXP’s board, the deal with Qualcomm is contingent on 70 percent of NXP’s shares being tendered, instead of the 80 percent threshold in the earlier agreement. Once the threshold is reached, Qualcomm can take over the entire company through a “second-step” transaction mechanism.

In a statement, Broadcom said, “Qualcomm’s board acted against the best interests of its stockholders by unilaterally transferring excessive value to NXP’s activist stockholders.” The company also added that its bid would automatically rise again to $82 if Qualcomm failed to complete its purchase of NXP. Broadcom also criticized Qualcomm on Wednesday for not liaising with it before raising its NXP bid.

Read More: Chinese Phone Makers, Including Xiaomi, OPPO, And Vivo Are Against Broadcom’s Qualcomm Takeover Bid

However, Qualcomm defended its move to increase the value of the NXP deal, arguing that it would expand the company’s markets and offer cost savings. Research analysts now believe that this move raises the chances that the  San Diego-based chipmaker will buy NXP and lowers the chances of a Broadcom-Qualcomm deal.

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