Qualcomm Says Has No Plans to Spin Off Chip Business at Present

US chipmaker Qualcomm has no plans to spin off its chips business at present, Executive Chairman Paul Jacobs said on Tuesday, despite recent investor pressure to do so amid intensifying industry competition.

Hedge fund Jana Partners said in April Qualcomm should spin off the chip business from its patent-licensing business to improve shareholder value, calling the chip business "essentially worthless".

"We've had that discussion for a long time, many years the board has looked at it but we still think the synergies of having the businesses together outweighs the dissynergies," Jacobs told Reuters on the sidelines of an American Chamber of Commerce event in Seoul.

Jacobs said, however, that the company is always evaluating its options and that the situation could change in the future.

Semiconductor Manufacturing International Corp. (SMIC) earlier this month announced it would partner with Qualcomm and a Belgian microelectronics research centre to form a new company that was aimed at developing and manufacturing advanced semiconductors for smartphones and servers. The partnership also features Huawei Technologies.

Late last month, Qualcomm and Daimler announced a partnership to explore wireless recharging of mobile phones in cars as well as recharging of electric cars without cables.

In a joint statement, Daimler and Qualcomm said they were assessing the application of wireless technology to charge their electric vehicles (EV) and plug-in hybrid EVs without ever having to plug them in. The companies are also exploring technologies that will enable customers to wirelessly charge devices such as mobile phones while driving in their car, as well as ways to enhance in-car experience through high-speed 3G/4G connectivity.

Written with inputs from Reuters