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Qualcomm and TDK Enter Joint Venture to Provide RFFE Solutions

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Qualcomm and TDK announce agreement

On January 13, 2016, Qualcomm (QCOM) and TDK Corporation (TDK), a Japanese (EWJ) electronics company, announced an agreement to form a joint venture (or JV). The JV will enable delivery of radio frequency front-end (or RFFE) modules and RF (radio frequency) filters to fully integrate systems for mobile devices and other fast-growing business segments. These segments will include drones, robots, Internet of Things (or IoT), automotive applications, and others under the name RF360 Singapore PTE. Ltd.

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According to a January 13, 2016, Qualcomm press release, the joint venture is expected to leverage TDK’s capabilities in micro-acoustic RF filtering, packaging, and module integration technologies and “Qualcomm’s expertise in advanced wireless technologies to serve customers with leading-edge RF solutions into fully integrated systems.”

Qualcomm and TDK are also looking to expand their JV around other technology fields such as sensors and wireless charging. The JV is expected to close by early 2017 subject to the mandatory regulatory approvals.

JV will bolster Qualcomm’s front-end solutions

“TDK is a leading electronic components manufacturer with cutting-edge expertise in RF filters and modules, and we are looking forward to deepening our collaboration and together accelerating innovation and better serving the ecosystem for next-generation mobile communications,” said Steve Mollenkopf, CEO (chief executive officer) of Qualcomm. “The joint venture’s RF filters will bolster Qualcomm RF360™ front-end solutions to enable Qualcomm Technologies, Inc. ([or] QTI) to deliver a truly complete solution to the ecosystem. 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.”

Qualcomm constitutes 8.6% of the iShares North American Tech-Multimedia Networking ETF (IGN). The other top holdings of this ETF include Harris (HRS) and Cisco Systems (CSCO), which constitute 9.1% and 8.7% of the ETF, respectively.

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