Qualcomm, TDK Form Joint Venture

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Qualcomm Incorporated (NASDAQ: QCOM) and TDK Corporation (TSE: 6762) today announced an agreement to form a joint venture to enable delivery of RF front-end (RFFE) modules and RF filters into fully integrated systems for mobile devices and fast-growing business segments, such as Internet of Things (IoT), drones, robotics, automotive applications and more, under the name RF360 Holdings Singapore PTE. Ltd. (RF360 Holdings)1. The joint venture will draw upon TDK’s capabilities in micro-acoustic RF filtering, packaging and module integration technologies and Qualcomm’s2 expertise in advanced wireless technologies to serve customers with leading-edge RF solutions into fully integrated systems.

1 The agreement was made between Qualcomm's indirect, wholly-owned subsidiary, Qualcomm Global Trading PTE. Ltd. (QGT), and other Qualcomm affiliates, including Qualcomm Technologies, Inc. (QTI), and TDK and other TDK affiliates.

2 Qualcomm RF front-end products are products of QTI.

In addition to creating RF360 Holdings, Qualcomm and TDK will expand their collaboration around key technology fields, including sensors and wireless charging.

The agreement is subject to receipt of regulatory approvals and other closing conditions and is expected to close by early 2017.

“TDK is a leading electronic components manufacturer with cutting-edge expertise in RF filters and modules, and we are looking forward to deepening our collaboration and together accelerating innovation and better serving the ecosystem for next-generation mobile communications,” said Steve Mollenkopf, CEO of Qualcomm Incorporated. “The joint venture’s RF filters will bolster Qualcomm RF360™ front-end solutions to enable Qualcomm Technologies, Inc. (QTI) to deliver a truly complete solution to the ecosystem. This will enable us to expand our growth opportunity by allowing us to accelerate our strategy to provide OEMs across our business segments with fully integrated systems that will enable them to deliver at scale and on an accelerated timeframe.”

“The joint venture with Qualcomm is a win for both companies, which complement each other ideally,” said Mr. Takehiro Kamigama, President and CEO of TDK. “Customers will benefit from our unique and comprehensive portfolio, which will further strengthen TDK’s position in key growth business segments and open new and exciting business opportunities. In this context, it was a major objective to ensure that our customers can continue to expect a seamless supply of discrete filters and duplexers, as well as modules.”