QCOM is currently making most of its profits from 3G and 4G licensing, and those royalties have been threatened by poor manufacturer cooperation and protectioni

QCOM is currently making most of its profits from 3G and 4G licensing, and those royalties have been threatened by poor manufacturer cooperation and protectionist regulatory actions in China and South Korea. Buying NXPI (and its many technologies) gives QCOM an escape path to diversify away from a maturing mobile handset market, with many foreign manufacturers in countries with a different view on IP.