Qualcomm Inc. (Nasdaq: QCOM) said Aug. 8 it had settled its antitrust dispute with the Taiwan Fair Trade Commission (TFTC).
The commission had accused Qualcomm of unfairly pricing its patents.
The resolution was announced in the wake of the company's decision to end its bid for NXP Semiconductors NV, the Dutch company it had been trying to acquire since 2016. U.S trade tensions with China stymied the deal, which needed approval from Chinese regulators to move forward.
Under the agreement with the TFTC, the commission will keep $93 million it has already received from Qualcomm as part of a $773 million judgement leveled in October.
This settlement replaces the 2017 decision.
At the time Qualcomm said it would challenge the fine, and asserted that the amount levied bore "no rational relationship to the amount of Qualcomm’s revenues or activities in Taiwan." The company said it would appeal the amount and the method used to calculate it.
As part of the settlement Qualcomm also said it had agreed to negotiate in good faith with Taiwanese handset makers and to invest an undisclosed amount in initiatives to be developed alongside the Taiwanese government including collaborations on 5G with chipmakers and others, projects at universities and the development of a Taiwanese center for operations and manufacturing engineering.
“We are pleased to have reached a mutually beneficial resolution with the TFTC that puts the litigation behind us,” said Alex Rogers, executive vice president and president of Qualcomm Technology Licensing. “This settlement directly addresses concerns raised by the TFTC, regardless of disputed positions, and builds on our foundation of collaborative, long-term business relationships in Taiwan."
The dispute dates back more than two years. Qualcomm revealed in late 2015 that the TFTC had initiated an investigation into whether its licensing arrangements violated the Taiwan Fair Trade Act.
Reach reporter Sarah de Crescenzo at email@example.com.