Qualcomm Incorporated

Overview

• Incorporated in California in 1985; reincorporated in Delaware in 1991.
• Fiscal year structure: 52-53 week fiscal years (2026: 52 weeks; 2025: 52 weeks; 2024: 53 weeks; 2023: 52 weeks).
• Core focus: enabling intelligent computing everywhere through on-device AI, high-performance low-power computing, and advanced wireless connectivity.
• Primary revenue sources: sales of integrated circuit products and licensing of intellectual property.

Segments and structure

• Three reportable segments:
  1. QCT (Qualcomm CDMA Technologies) – semiconductor business and related software.
  2. QTL (Qualcomm Technology Licensing) – licensing of patents and other rights.
  3. QSI (Qualcomm Strategic Initiatives) – strategic investments.
• Nonreportable segments: QGOV (Qualcomm Government Technologies) and Data Center (formerly cloud computing processing initiative).

QCT — Semiconductors and platform software

• Develops and supplies IC platforms and system software with advanced connectivity and high-performance, low-power computing for mobile devices, automotive systems, and IoT.
• Product families and components:
  • Snapdragon and Dragonwing platforms (SoC solutions for mobile, compute, automotive, and IoT).
  • CPUs: Qualcomm Oryon and Kryo.
  • GPUs: Adreno.
  • NPUs: Hexagon NPU.
  • AI software: Qualcomm AI Engine, Qualcomm AI Stack, and AI Hub for developers.
• Integrated platform approach: SoCs that combine CPU, GPU, NPU, AI processing, security, multimedia, RF/transceiver, power management, audio, and supporting components (RF front-end modules, antennas).
• Manufacturing and supply model:
  • Fabless for most products; relies on foundries (TSMC, Samsung, GlobalFoundries) and assembly/test partners (ASE, Amkor, SPIL, STATSChipPAC).
  • Some in-house manufacturing for specific RF modules and RF filter products.
  • Front-end wafer fabrication in Germany and Singapore; back-end packaging/testing in China and Singapore.
• Market dynamics: highly competitive global semiconductor market driven by performance, integration, standards compliance, price, time-to-market, design capability, and support. Competition includes customers’ internal IC development and broader industry players.

QTL — Licensing

• Licenses Qualcomm’s patent portfolio, including standard-essential patents for cellular technologies such as LTE and 5G.
• Licensing model: per-unit royalties (often based on a percentage of the licensee’s wholesale selling price) with some minimums, caps, or fixed per-unit royalties; some licenses include manufacturing or supply rights.
• Patent portfolio: broad U.S. and international holdings covering LTE, 5G, and other wireless and related technologies, including both standards-based and non-standard innovations.
• Revenue characteristics: licensing revenues are primarily generated from per-unit royalties tied to licensees’ sales of products that incorporate or use licensed IP.
• Industry role and risks: active participation in standards bodies and subject to government investigations and legal proceedings related to patent licensing practices.

QSI — Strategic investments

• Qualcomm Ventures and other investment activities focused on expanding opportunities for Qualcomm technologies.
• Investment profile: early-stage companies across 5G, AI, automotive, consumer, enterprise, cloud, IoT, XR, and related areas; investments are largely in non-marketable equity securities, with some marketable securities and convertible debt.
• Objectives: pursue strategic exits and other return opportunities as part of broader technology adoption and ecosystem development.

Intellectual property

• Maintains a broad patent portfolio across connectivity (4G/LTE, 5G), computing, AI, memory, positioning, and related technologies.
• Portfolio includes standard-essential and non-essential patents, with licensing strategies intended to support ecosystem growth and device affordability.

Industry trends and opportunities

• Growth in on-device and edge AI across mobile, automotive, and IoT applications.
• Generative AI and device-level AI acceleration (AI Engine, AI Stack, on-device models).
• Continued 5G deployment, evolution to 5G Advanced, and potential future 6G capabilities (AI integration, sensing, digital twins).
• Automotive trends: digital cockpit, ADAS/AD, car-to-cloud platforms, and increasing embedded cellular connectivity in new vehicles.
• IoT demand across consumer, edge networking, and industrial segments; XR and wearables as AI-enabled devices; Wi-Fi evolution and edge networking opportunities.

Geography and supply chain

• Foundry partners: TSMC, Samsung, GlobalFoundries.
• Assembly/testing partners: ASE, Amkor, Siliconware Precision Industries, STATSChipPAC.
• Major manufacturing presence in the Asia-Pacific region; front-end fabrication also in Germany and Singapore; back-end packaging/testing in China and Singapore.

Bottom line

Qualcomm is a diversified technology company organized into three reportable segments—QCT (semiconductors and platform software), QTL (patent licensing), and QSI (strategic investments)—with additional nonreportable units in government technologies and data center ventures. The company focuses on on-device AI, high-performance low-power computing, and advanced wireless connectivity, delivering products and IP across mobile, automotive, and IoT markets while maintaining a strong IP licensing business and a strategic venture investment arm.