Qualcomm And TDK Create £2bn Wireless Joint Venture

Qualcomm and TDK are forming a $3 billion (£2bn) joint-venture that will create wireless components for all manner of connected devices as well as working together on other areas such as wireless charging and batteries.

Singapore-based RF360 Holdings will focus on the creation of RF front end (RFFE) modules and RF filters, which are used by devices such as smartphones to connect to networks.

The partners claim TDK’s expertise in the RF field and Qualcomm’s wireless technology will allow RF360 to take advantage of a growing market worth an estimated $18 billion (£12.5bn).

Wireless collaboration

It is claimed that the growing complexity of mobile networks, especially as the industry moves towards 5G, different frequencies and the myriad of wireless technologies that must be supported by the Internet of Things (IoT) will make the module solutions produced by the joint-venture “essential.”

Additionally, the technology created by the joint-venture will provide Qualcomm with the ability to offer customers fully integrated systems for mobile devices, IoT units, robotics, smart cars and drones.

Qualcomm will own 51 percent of the new company, while TDK will own 49 percent. The joint-venture will purchase certain TDK RF assets as part of the deal, which could be completed by early 2017 if regulatory approval is granted.

“The joint venture’s RF filters will bolster Qualcomm RF360 front-end solutions to enable Qualcomm Technologies, Inc. (QTI) to deliver a truly complete solution to the ecosystem,” said Qualcomm CEO Steve Mollenkopf. “This will enable us to expand our growth opportunity by allowing us to accelerate our strategy to provide OEMs across our business segments with fully integrated systems that will enable them to deliver at scale and on an accelerated timeframe.”

“The joint venture with Qualcomm is a win for both companies, which complement each other ideally,” added Takehiro Kamigama, President and CEO of TDK. “Customers will benefit from our unique and comprehensive portfolio, which will further strengthen TDK’s position in key growth business segments and open new and exciting business opportunities. In this context, it was a major objective to ensure that our customers can continue to expect a seamless supply of discrete filters and duplexers, as well as modules.”