Qualcomm has just announced, at Qualcomm's China Technology Day, that the company has signed four memoranda of understanding (MoU) with Lenovo, OPPO, Vivo, and Xiaomi, as those four companies are interested in purchasing Qualcomm's RF Front End (RFFE) components with a value of $2 billion. Now, the aforementioned China-based companies are planning to purchase all of those components over the next three years, notes Qualcomm.
Now, it's also worth noting that this is a non-binding agreement, which is something Qualcomm was very clear about in its press release. That means that the four companies are not obligated to purchase all of those components, so the agreement can go down the drain at some point. Qualcomm is also very clear as to what components are in question here, only the company's RF Front End (RFFE) components, so the company's mobile SoC are not included here. The company's RFFE components are essentially meant to help companies manufacture more complex mobile devices at larger scales. The company's front-end RF solutions can actually help companies build more power efficient smartphones, while they can also manufacture phones with wider frequency range, greater capacity, and enhanced coverage. All of this is supposed to help companies prepare and address advanced technology demands, including upcoming 5G networks.
Qualcomm's broad RF front-end platform includes GaAs Power Amplifiers (PA), Envelope Trackers, Multi-Mode PA and modules, RF switches, discrete filters and filter-rich modules, and antenna tuners. Now, as already mentioned, this agreement is non-binding, and the agreement was announced during the company's Technology Day in China, which is essentially an event during which Qualcomm discusses the global future of mobile technology, and in addition to that, the company also talked about how the expanded adoption of RFFE technology will play an important role in the evolution of 5G. This announcement actually follows yesterday's news, of how Qualcomm got fined by the EU over its exclusivity deal with Apple. Qualcomm actually received a $1.23 billion fine by the EU, and the company has already announced that it will appeal that fine, soon after it was announced, so it remains to be seen what will happen in the end.