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Qualcomm-TDK Joint Venture: Module Solutions for Complex RFFE

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Mobile communications increase demands in RFFE segment

The joint venture between Qualcomm (QCOM) and TDK will be named RF360 Holdings Singapore PTE. Ltd. According to Qualcomm, this newly formed company will be poised to meet demands of the RF (radio frequency) industry. Mobile communications is one of the most dynamic industries and is placing a growing demand on all players in the segment.

Current and future smartphones from leading manufacturers such as Apple (AAPL) and Korea’s (EWY) Samsung (SSNLF) will support frequency bands for 2G (second-generation), 3G (third-generation), and 4G (fourth-generation) LTE (Long-Term Evolution). They will simultaneously offer network connectivity for wireless LAN (local area network), Bluetooth, and satellite navigation.

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In its January 13, 2016, press release, Qualcomm stated that “the convergence of 4G mobile communications and the IoT means that manufacturers of wireless solutions for mobile IoT devices must achieve new levels of miniaturization, integration and performance, especially for the RFFE [radio frequency front-end] in these devices. Further, 5G will expand this complexity even more. Module solutions will be essential to supporting this increasing complexity in the RFFE.”

TDK says customers will benefit from the joint venture

“The joint venture with Qualcomm is a win for both companies, which complement each other ideally,” said Takehiro Kamigama, president and CEO (chief executive officer) 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.”

Share prices of Qorvo (QRVO) and Skyworks Solutions (SWKS), companies in the RF sector, fell by 9.8% and 6.7%, respectively, after the joint venture announcement.

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