(Yicai Global) March 20 – Three of China’s leading smartphone makers have jointly issued support for US maker Qualcomm as it looks to stave off a hostile takeover by industry rival Broadcom.
Xiaomi Communications, Oppo and Vivo, which are all major Qualcomm customers, argue that the deal could lead an industry monopoly and hinder innovation in China. The phone makers have also agreed a purchasing deal with Qualcomm for front-end components in a deal worth USD2 billion.
The three firms are among many in China that leverage Qualcomm’s chips when developing products, saving money on innovations and helping them to compete against major market players such as Apple.
Xiaomi President Lin Bin commented that the merger could affect the company’s future products in terms of how innovative they are.
Qualcomm will hold a vote on the takeover at its AGM in March, and has advised shareholders to vote no.