The text is a transcript of a video report about Qualcomm, a company that makes chips and licenses technology for wireless communication. The report covers the following points:
- Qualcomm pioneered the CDMA standard that enabled 3G, 4G and 5G networks, and has a large patent portfolio that generates licensing fees from other device makers.
- Qualcomm faced legal challenges from the FTC and Apple over its patent licensing practices, but prevailed in both cases. However, Apple is expected to stop using Qualcomm's chips for its iPhones by 2024 and develop its own cellular modem.
- Qualcomm is diversifying its business into other areas such as automotive, VR/AR, PC and generative AI, where it faces competition from Nvidia, Intel, AMD and others.
- Qualcomm is betting on the future of on-device AI, where it can leverage its Snapdragon processors to run AI models locally without relying on the cloud. It has partnerships with Microsoft, Meta and others for this purpose.
- Qualcomm is also investing in U.S.-based chip fabrication plants to reduce its dependence on Asian foundries and address the global chip shortage.
1. Qualcomm's technology is present in nearly all smartphones, pioneering the ability to connect wirelessly since the 80s.
2. Qualcomm is an intellectual property company and has held the title of the world's biggest chip company by revenue.
3. With the rise of companies like Nvidia, Qualcomm's position as a leader in chip design has been challenged.
4. Qualcomm CEO Cristiano Aman is betting on generative AI being in high demand off the cloud.
5. Qualcomm has a new partnership with cloud computing providers and has expanded its auto offerings into motorcycles.
6. Qualcomm faced two major lawsuits in 2017, one from the Federal Trade Commission over unfair patent licensing practices and another from Apple.
7. Qualcomm has 140,000 patents and is known for licensing its core technology concepts.
8. Qualcomm's semiconductor business is growing, and its chips get their start in a lab in San Diego.
9. Qualcomm's chips are sent to multi-billion dollar chip fabrication plants, also known as foundries, largely in Asia.
10. Qualcomm faces mounting tensions with China due to its reliance on shipmakers in Asia.
11. Qualcomm is diversifying its focus to chips for other smart devices, with cars being a key area.
12. Qualcomm's digital chassis powers cloud-connected video and audio, advanced driver assistance systems, and things like face recognition for automatic doors.
13. Qualcomm is also diversifying into the connectivity of things like virtual or augmented reality headsets.
14. In 2021, Qualcomm bought CPU startup Nuvia for 1.4 billion, planning to have its ARM-based processors in PCs by 2024.
15. Qualcomm's newest announcements show a big new focus on enabling devices for generative AI.
16. Qualcomm has the ability to put chipsets into devices that can handle and process different workloads.
17. The business of on-device AI is unproven, and it's unclear whether Qualcomm will be able to upsell a premium for each of its licensees and chipsets for having advanced AI capabilities.
18. Analysts say that Qualcomm's long-term outlook remains stable, with more and more things being connected to the internet.