Qualcomm is a 7 trillion dollar company that develops chips for smartphones and AI devices.

Qualcomm, a 7 trillion dollar company, is the father of chip developers for smartphones and AI devices / by Tutanman
Did you know if we try to get a premium smartphone?
Like iPhones from Apple, Samsung, and Xiaomi.

We find chip parts that are almost entirely designed by Qualcomm.

– The iPhone will have a 5G modem chip designed by Qualcomm.
– In some Samsung and Xiaomi models, we find processing chips designed by Qualcomm.

We can see that almost every smartphone model must have at least one Qualcomm chip.

Before founding Qualcomm, Jacobs was a communications technology researcher.
He had a dream that one day we will all have our own phone number

Four years after the company was founded, Qualcomm has changed the world.
By starting the 3G network, which is a wireless network. The fastest at that time

Qualcomm has launched a technology called CDMA.

CDMA or Code Division Multiple Access Technology
It is a technology that makes every user of a mobile device able to send information back and forth at the same time. without interference that each person’s mobile device There will be a special code that will not interfere with each other.

It’s like everyone can drive fast. On the same road But they don’t collide. Because every car has separate lanes. That’s for everyone.

After that CDMA became the basic technology of 3G networks.
And Qualcomm is a pioneer. Make 3G network technology available throughout the United States.

Later in 1998, Qualcomm launched the pdQ brand mobile phone using CDMA technology as the base.
But it is still not popular. So they decided to sell this smartphone manufacturing business to Kyocera.

Qualcomm then closed its doors on the mobile phone business.

Then turn to focus on the development of technology that our eyes cannot see
such as wireless communication to the chipset For electronic devices such as mobile phones and laptops

Then came the 3G network started by Qualcomm. It can reach many countries around the world.
In 2003, Qualcomm was the first to make mobile phones. Can use different features.
Such as making video calls, streaming video, playing music, playing games, and using the camera.

which is all It is the basis of smartphone technology. which is to come in the future

– In 2007, Qualcomm launched the first processor chip.
That is “Snapdragon S1 QSD8250” by the customer who used this version of the processor chip the smartphone brand TOSHIBA, model TG01.

– In 2010, 3G networks started by Qualcomm were widely used around the world.
with over 1,000 million users

– In 2011, Qualcomm began releasing chipsets. For use in various devices that must be connected to the Internet. Or what we call the Internet of Things (IoT)

Such as laptops, PC computers, smart TVs, smart lighting systems. and security system Chips for IoT devices help to update technology in everyday life. into the digital age later

– From 2017 to 2018, Qualcomm was still the first company to develop a modem that received 5G signals.

When you read up to this point, you will see that Qualcomm is a company that has strengths.
Regarding the development and design of chipsets, especially the processing chip
and chips related to Internet or 5G network communications

As a result, Qualcomm is now a leading supplier of chip development and design. which is like an important organ For various electronic devices in daily life, such as

– Processor chip and 5G modem chip for smartphones
– Chipset for autonomous driving in cars
– CPU, GPU and NPU chips for smartphones and laptops
– Chipset for AR or VR glasses
– Chipsets for IoT devices both at home and in business centers Also known as Smart Home and Smart Factory.

At this point, we can see that Qualcomm’s main customers are:
– Laptop and PC computer brands such as Lenovo, DELL, Acer, Asus
– Car brands like Deepal, Neta, Zeekr, XPeng
– Smartphone brands such as Apple, Samsung and Xiaomi.

Qualcomm’s flagship product is the chipset used for smartphones.
– Snapdragon 8 Gen 3 processor chip used for Samsung Galaxy S24 and Xiaomi 14
– 5G modem chip used for all Apple iPhone models

It can be seen that almost all smartphone brands
All must be responsible for chip development and design. Any type of Qualcomm

Although these smartphone brands are able to design their own mobile phone chips..

– Samsung can design processing chips. Proprietary in Exynos brand
– Apple can design processor chips. He himself, like the chips A17 and A18.

But the reason is that smartphone brands You still have to rely on chip developers and designers like Qualcomm.

That’s because of the ‘smartphone’ Brand There is not enough innovation or knowledge yet. for certain types of chip design

When that happens
– Samsung has to rely on Qualcomm to develop and design processor chips.
for smartphones like the S24 model (and possibly including the next models)

Because of the Qualcomm chip that was used only for this model. It is more efficient than Samsung’s own designed and manufactured chips.

– Apple must rely on Qualcomm to develop and design 5G modem chips for the iPhone because Apple cannot currently develop its own 5G modem chips.

In summary, Qualcomm has unique experience and innovation.
for chip development and design Until many famous smartphone brands Everyone has to rely on it.

Qualcomm will have a fabless business model, meaning it will design chips on its own.
Then hire a chip manufacturing company like TSMC in Taiwan in an OEM format to produce it for you.

Qualcomm then imports chips made by contract manufacturers. to sell to brands that own products such as Apple, Samsung, and Xiaomi.

Companies that compete with Qualcomm are chip development and design companies such as MediaTek, AMD, Broadcom, and NVIDIA.

Now let’s look at Qualcomm’s performance over the past 3 years.

Qualcomm Company Results (Fiscal Year Ending September)

The year 2021 has a revenue of 1,220,000 million baht, a profit of 329,000 million baht.
The year 2022 has a revenue of 1,610,000 million baht, a profit of 471,000 million baht.
In 2023, revenue of 1,300,000 million baht, profit of 263,000 million baht.

The first 9 months of 2024
Revenue of 1,050,000 million baht, profit of 262,000 million baht

Qualcomm’s revenue will come in 2024, every 100 baht

– 77 baht Chipset for smartphones
– 15 baht Chipset for laptop, PC and IoT devices.
– 8 baht Chipset for various in-vehicle systems and autonomous driving.

Now, Qualcomm executives are turning their focus to the downstream business. such as the chipset auto industry that is going to grow from the EV vehicle movement for autonomous driving technology

Including CPU, GPU and NPU processing chipset industry for PC and laptops to respond to the AI ​​trend. Expansion to other product types is also possible in the future.

But we have to continue to see that. these businesses that are similar to Qualcomm’s New S-Curve, how well will it grow?

because of the past Stock prices reflect success. And Qualcomm’s expectations have already been pretty much met.
– 6 months ago, stock price +11%
– 1 year ago, stock price +48%
– 5 years ago, stock price +143%

and if the operating results are not as expected Investors may have to face disappointment in stock prices..