Qualcomm signs $2 billion sales MOUs with Lenovo, Xiaomi, vivo and OPPO
(Reuters) – @Qualcomm Technologies Inc (QCOM.O) has signed memorandums of understanding for sales worth at least $2 billion with top Chinese smartphone vendors, receiving vocal support from the firms as it fights an unsolicited buyout bid from @Broadcom Ltd (AVGO.O). @LenovoGroup (0992.HK), @Guangdong @OPPO Mobile Telecommunications Corp, @vivo Communication Technology and @Xiaomi Communications have expressed an interest in buying Qualcomm components with a total value of no less than $2 billion over three years, the U.S. chip maker said on Thursday. The non-binding agreement will be subject to further agreements and covers technology related to RF Front-End components, Qualcomm said in a statement. The companies announced the multi-year agreement at a Qualcomm-hosted event in Beijing attended by the U.S. firm’s chairman and chief executive. At the event representatives from the Chinese companies expressed concerns that a possible acquisition of Qualcomm by Broadcom could hurt investment in chip technology. Broadcom in November made an unsolicited $103 billion bid for Qualcomm, which Qualcomm says undervalues it. A potential merger would likely face regulatory scrutiny in China, where Qualcomm has been fined before over anti-trust issues and where the government is promoting local chip production.