Qualcomm Acquires Sequans' 4G IoT Technology

Qualcomm Incorporated [https://www.conevoelec.com/manufacturer/qualcomm], through its wholly-owned subsidiary Qualcomm Technologies, Inc., has announced a definitive agreement with French IoT wireless cellular semiconductor company Sequans Communications to acquire Sequans' 4G IoT technology. This acquisition will strengthen Qualcomm's industrial IoT product portfolio and is expected to establish a leadership position in this field, further consolidating Qualcomm's status in the rapidly expanding IoT market.

Overview of the Companies

Qualcomm is a globally leading high-tech enterprise, focusing on high-performance, low-power solutions. It provides mobile technology solutions, including cellular modems, processors, and RF components, supporting a variety of products across multiple fields such as smartphones, mobile PCs, wearable devices, and XR terminals.

Sequans Communications, established in 2003, is a fabless semiconductor company specializing in the design and development of chipsets and modules for IoT devices. It offers a broad range of 5G/4G cellular category products, including 5G NR, Cat 4, Cat 1, and LTE-M/NB-IoT, providing reliable IoT wireless connections without the need for gateways.

Significance and Impact of the Acquisition

Through this acquisition, Qualcomm will gain key 4G IoT technologies of Sequans, including LTE-M/NB-IoT and LTE Cat 1bis, which form the basis of Sequans' Monarch 2 and Calliope 2 product series. These technologies are crucial for supporting large-scale IoT applications operating at low data rates and will help Qualcomm provide low-power solutions, offering reliable and optimized cellular connections for industrial IoT applications.

Furthermore, Sequans will retain the full rights to continue using the technology commercially through a perpetual license agreement, supporting the company's ability to expand its 4G business and develop its 5G product portfolio. At the same time, Qualcomm will acquire 74 engineers from Sequans, strengthening Qualcomm's technical strength and market strategy in the cellular IoT market. Additionally, Sequans' broad product portfolio in the cellular IoT chip field, including 5G NR, LTE Cat 4, LTE Cat 1, and LTE-M/NB-IoT, will bring a wider range of technical resources and market opportunities to Qualcomm.

The acquisition of Sequans' 4G IoT technology by Qualcomm not only strengthens Qualcomm's product supply but also expands its market share. The transaction is expected to be completed by mid-October 2024, subject to approval by French regulatory authorities. Despite the commercialization of 5G technology for many years, 4G IoT technology will continue to be a dominant force in the market for the next few years, especially in overseas markets. This strategic investment by Qualcomm is clearly aimed at seizing this market trend and strengthening its global layout in the cellular IoT field by acquiring Sequans' 4G IoT technology.

Conclusion

In summary, this acquisition will bring resources and flexibility to Qualcomm, enhancing its product supply and market share, while driving innovation and providing cutting-edge 4G/5G semiconductor solutions [https://www.conevoelec.com/category-all] to meet the evolving needs of AI-driven IoT applications. Qualcomm looks forward to transforming the industry with its advanced IoT solutions, redefining business models, and enhancing user experiences. The transaction is expected to provide Sequans with the resources and flexibility needed to strengthen its product supply and expand its market share.

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