Qualcomm said to be against break-up of chip, licensing units

San Francisco

QUALCOMM Inc chief executive officer Steve Mollenkopf is struggling with the chipmaker's worst stock decline since the financial crisis, dragged down by earnings shortfalls and antitrust inquiries around the world. Things may get worse if he yields to pressure from some investors to split the business in two.

The company has been considering options including whether to separate its chip and technology licensing units - a dual business structure that for decades has nurtured Qualcomm's success by allowing it to collect royalties on the patents developed in its chip division's labs. The chipmaker's board will meet in the coming days, according to a person familiar with the matter, and may announce a decision by the end of the week. Management is leaning towards keeping the company together, two people familiar with the matter said, emphasising that no decision had been made yet.