What is the management strategy developed by the new CEO of Qualcomm, the world's largest semiconductor company?



In June 2021, President Cristiano Amon was appointed as the new CEO of semiconductor design company Qualcomm. The Wall Street Journal of the American economic newspaper features what kind of management strategy Mr. Amon, who became the new CEO of Qualcomm who is suffering from semiconductor shortage, is developing.

'We're in a Hurry.' A New CEO Scrambles to Cope With a Global Chip Crisis. --WSJ
https://www.wsj.com/articles/were-in-a-hurry-a-new-ceo-scrambles-to-cope-with-a-global-chip-crisis-11633701630

Qualcomm was founded in 1985 by Irwin Jacobs' first CEO and Andrew Viterbi . Qualcomm has been developing code division multiple access (CDMA) technology since its inception and has become widely known for its application to 3G mobile phones. In addition to CDMA technology licenses, we also design and manufacture semiconductors for mobile phones, and Snapdragon, a SoC for mobile phones, is installed in many Android smartphones. In 2005, Paul Jacobs, the son of Irwin's first CEO, became the second CEO, and in 2014 Steve Morenkov became the third CEO.

Qualcomm, when Morenkov was CEO, had a turbulent era in which he fought a bog court battle with Apple and was sentenced to violate antitrust laws. 'That was an unprecedented event,' Morenkov recalls, especially when a hostile takeover was launched by competitor Broadcom.

'That was an unprecedented event,' Qualcomm CEO looks back on Broadcom's hostile takeover attack-GIGAZINE



After graduating from the electrical engineering department of Campinas State University in the suburbs of Sao Paulo, Brazil, Mr. Amon worked for Vésper, a Brazilian telecommunications company, and became Chief Technology Officer. After joining Qualcomm in 1995, Mr. Amon was active as the face of Qualcomm at various events, was responsible for the promotion of the Snapdragon platform and the development of 5G chips as the head of the chip division, and was the president of Qualcomm. Mr. Amon was appointed as Qualcomm's fourth CEO on June 30, 2021, concurrently serving as president.



CEO Amon was originally active as the face of Qualcomm, and in contrast to Mr. Morenkov, who did not disseminate information on the front stage, he declared that he would 'proactively disseminate information himself'. We actually send various information through SNS. In addition, he has boldly changed the personnel affairs of the company management team, and revealed that he has invited nearly 20 new executives who are familiar with cloud computing, PC-related, and automobile technology.



'I have the belief that I sometimes have to meet people in person,' said Amon, who travels around the world as soon as he takes office.

The first problem that Quallcomm must solve is the global shortage of semiconductors. Amon has been asking TSMC, the world's largest semiconductor maker, to increase production in order to overcome the current situation of semiconductor shortages several months before he became CEO. This is because Qualcomm, which designs chips for hundreds of millions of electronic devices each year, needed the help of TSMC to meet the demands of large customers such as Apple, Samsung, and major Chinese smartphone makers. .. Amon has been quarantined for three days with the permission of the Taiwanese government, and has negotiated directly with TSMC in Taipei, while entry to Taiwan is severely restricted due to the influence of the new corona.

Qualcomm also aims to increase its share of the Chinese mobile phone chip market. Huawei had a large share of the mobile phone chip market in China, but it has been hit hard by cease and desist measures such as the United States and the United Kingdom that will continue from 2019, and Qualcomm has a chance to attack at once. CEO Amon is taking new strategies such as making advance payments to local suppliers and signing contracts for longer than usual in order to increase Qualcomm's manufacturing capacity.

CEO Amon then met with contractors in the defense industry and CEOs of automakers as part of an effort to diversify Qualcomm's customer base from smartphone makers. For example, CEO Amon has negotiated with French car maker Renault to sign a contract to use Qualcomm's chips in the in-vehicle system of Renault's new Megane E-TECH Electric vehicle.



In addition, Qualcomm in 2021 October 4, that the acquisition of Vionia is an automobile high-tech companies of Sweden at 46 billion dollars (about 500 billion yen) announced was. According to the Wall Street Journal, the management of Vionia is, Tesla and Mobil eye has sought a buyer gives us the only research scale of competitive with the automobile high-tech companies such as, Amon CEO the first two billion US dollars (about 2200 We offered 100 million yen) and then offered a purchase price of 2.5 billion dollars (about 280 billion yen). In July 2021, Canadian auto parts maker Magna International proposed an acquisition for $ 3.8 billion, but Qualcomm offered a higher acquisition price, and Veoneer Is now part of Qualcomm.

Qualcomm Proposes Acquisition to Veoneer of Automotive Technology for 500 Billion Yen-GIGAZINE


by Kārlis Dambrāns

'We're running out of tips and time. We're in a hurry. We have a lot to do. I'm diversifying and relocating Qualcomm.' I have to do it, but I don't have much time. '

Related Posts:

in Note, Posted by log1i_yk