Qualcomm ‘positive’ on Trump administration as it forecasts chip sales growth

Qualcomm said on Tuesday it was “positive” on President-elect Donald Trump’s incoming administration and not concerned that proposed US tariffs on China would dampen its business in the country from which it derives nearly half its revenue.

Qualcomm executives made the remarks at an investor event in New York during which the company forecast US$22 billion in combined revenue over the next five years from laptops, cars and other products outside its current stronghold in smartphones, a sharp growth from its latest fiscal year.

During a question-and-answer session with analyst, Alex Rogers, who runs Qualcomm’s technology licensing business, said the San Diego, California, company had a “great relationship” with Trump’s previous administration, which blocked a hostile takeover bid for Qualcomm from rival Broadcom.

“We expect a good relationship going forward. We’re very positive on the recent pick for Commerce Secretary, so we are expecting to have a good relationship and to be engaged as we have been through this past administration,” Rogers said, referencing Trump’s expected nomination of Howard Lutnick.

Responding to another analyst question, Qualcomm Chief Executive Cristiano Amon said he does not foresee problems competing for business in China, which accounted for 46 per cent of Qualcomm’s nearly US$40 billion in revenue in its most recent fiscal year. Trump has proposed tariffs of 60 per cent on Chinese imports, which economists have said China might respond to with tariffs of its own on American goods.

For now, Amon said Chinese firms are buying Qualcomm’s automotive chips, and that the last round of Trump tariffs on Chinese goods did not hurt Qualcomm.