TSMC may become Apple Qualcomm and the big winner

According to the Economic Daily, Apple and Qualcomm’s two-year lawsuit on patent technology issues ended with reconciliation and revoked all ongoing patent litigations worldwide. According to statistics, Qualcomm filed more than 50 lawsuits against Apple in the United States, China and Europe, and today both parties announced their agreement to settle.

Wedbush Securities analyst Dan Ives said: "This is a major victory for Qualcomm, because people's fear of losing the court is a huge burden on Apple in this intellectual property dispute. But the solution is really unexpected for investors. Apple finally realized that it was more about the two companies facing bigger problems in 5G and iPhone, and the focus should not be on courting Qualcomm in court."

For a settlement with Apple, Qualcomm believes that it will help improve the stability of the licensing business, while demonstrating the value and strength of Qualcomm's intellectual property. It is expected that with the increase in shipments, the net profit per share will be increased by 2 US dollars.

Qualcomm's share price surged 23%, and the biggest one-day gain in 20 years, and Apple's share price also rose slightly.

Analyst Wang Zhaoli said that with the reconciliation between Apple and Qualcomm, the two sides reached a multi-year chip supply agreement, which means that Qualcomm is expected to return to the Apple supply chain. TSMC is a Qualcomm chip foundry and should be able to benefit.

Wang Zhaoli also said that while Qualcomm is expected to return to Apple's supply chain, Intel's exclusive supply of Apple's mobile phone modem chip will not be guaranteed. In addition, MediaTek's chances of entering the Apple supply chain will be reduced.