After failing to get the nod of regulators in China, Qualcomm Incorporated has terminated its US$44-billion plan to acquire NXP Semiconductors N.V., barely two years since it offered to buy out the Dutch company. In accordance with the terms of the purchase agreement, Qualcomm River Holdings will pay a termination fee of US$2 billion to NXP.

Following the termination, Qualcomm River Holdings has terminated its previously announced cash tender offer to acquire all of the outstanding shares of NXP. In lieu of this, its Board of Directors has authorized a stock repurchase program of US$30 billion, replacing the Company's existing US$10 billion stock repurchase authorization.

"Our core strategy of driving Qualcomm technologies into higher growth industries remains unchanged. We will continue to focus on our strong momentum in these growth industries with projected revenues of approximately US$5 billion for fiscal year 2018, up greater than 70 percent from fiscal year 2016. We believe our technology leadership and disciplined execution will drive significant value creation for our stockholders," said Steve Mollenkopf, Chief Executive Officer at Qualcomm.

Considered as one of the largest bid in the semiconductor industry, Qualcomm offered in October 2016 to acquire NXP. Because the huge impact of the deal, antitrust regulators from nine countries had to approve the acquisition. Until the deal's termination, China has been holding off its approval.

Qualcomm continues to achieve strong growth, accelerated by its expansion and momentum in the areas of Internet of Things (IoT), automotive, radio frequency front end (RFFE), computing, and networking. In IoT, the company said it has more than US$1 billion in revenue in 2017 while it is poised to deliver robust connectivity solutions and leading intelligence capabilities for future connected cars.

Qualcomm's RFFE solution, meanwhile, has able to secure design wins with top-tier smartphone manufacturers in addition to security non-binding memorandums of understanding with a contract value of US$2 billion with leading OEMs, such as Lenovo, OPPO, Vivo, and Xiaomi. In advanced compute, the company said its Qualcomm Snapdragon 835 mobile platform has redefined connected PC experience following its adoption by various OEMs.

The company has been relentless in its efforts toward 5G and opportunities in this next-generation cellular technology has helped to increase Qualcomm's Servicable Addressable Market (SAM) to US$100 billion.