Qualcomm Eyes ByteDance Deal to Expand Chip-Design Business, Reuters Reports

QUALCOMM Incorporated (NASDAQ:QCOM) is included among the 10 Reliable Dividend Stocks to Buy for Long-Term Investors.

On June 24, Reuters reported that QUALCOMM Incorporated (NASDAQ:QCOM) is in talks to provide chip-design services to China’s ByteDance, according to four people familiar with the matter. The move is part of Qualcomm’s effort to diversify its business and reduce its reliance on the smartphone market, which remains its largest source of revenue.

If the discussions lead to a deal, ByteDance, the parent company of TikTok, would become one of the first customers of Qualcomm’s chip-design services business. Qualcomm is currently the world’s largest supplier of smartphone modem chips. They mainly handle cellular communications.

According to three sources, Qualcomm is discussing the design of custom chips for ByteDance. Two of the sources said the chips would be based in part on technology from AlphaWave Semi. It is a high-speed connectivity specialist that Qualcomm acquired last year. The talks are ongoing, but their outcome remains uncertain, according to three sources. It is still unclear whether the discussions will result in a completed chip design and manufacturing agreement. The sources added that ByteDance could also choose to work with other partners.

QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry. Its portfolio includes 3G, 4G, and 5G wireless connectivity, as well as high-performance and low-power computing technologies, including on-device artificial intelligence.

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