Qualcomm at Citi Conference Notes

Steve Mollenkopf

5G is the next big thing

Sure, so, 5G is – it’s the next big step in cellular. I think it’s interesting for two reasons. One is it’s another generation of cellular technology. You essentially get higher speeds. You get advanced robustness, and so you’re setting up the business for the massive Internet of. You also get a number of features that make services that are very difficult to big mission-critical services essentially.

The network will begin to be absorbed by other industries

“the more interesting part I think is that this is the case, this is the time, and this is when cellular road map really starts to be absorbed by other industries beside cellular. So automotive, things like self-driving cars, the network that will be used for self-driving cars has a different set of circumstances and requirements than what you would have in just the case of just pure cellular, and that is replicated across a number of different verticals, healthcare, the industrial space.”

Commercial 5G in 2019

“You’ll start to see the first commercial devices in 2019. You can go to the store, buy a device with 5G in it in 2019. You’re already seeing people doing trials and early developments in the marketplace now. But the real standard compliance, new radio 5G will happen in 2019 time frame and we’ve been accelerating our plans for that.”

This is the first time that China is pushing not just waiting

“If I were to answer that same question a year ago, I would have said 2020, and it’s being pulled in part in The United States also in Asia. Interestingly, it’s not – this is the first time I’ve seen this happen with the G transitions, but I’ve been in a number of G transitions. This is the first time that China is not waiting, and they’re really wanting to go pretty aggressively as well.”

Not going to be a strong 5G player unless you were strong in 4G and 3G

“just like in the 4G transition, I don’t think you’re going to be a strong 5G player unless you were already a strong 4G and 3G player. And that has to do with the way in which the network will be deployed. It will be deployed with regional hotspots of 5G where maybe they have spectrum allocations, very favorable. They have millimeter-wave frequencies depending on the geography or the location, and it will be on top of a sea of 4G.”

Data center is being architected by big cloud providers for themselves

“So the data center is an interesting space for us because it’s going through a transition. And the transition, I think, there are at least three aspects of it that I would highlight. One, is the growth is happening in data centers that people are architecting and building themselves, meaning that these are the big cloud providers. They are building their own cloud areas, or they are offering cloud services broadly. And they want to have control over the architecture of the data center, and they want a willing partner that has scale and someone instead of just their normal option.”

Chinese cloud another big change in datacenter

“The second one is that you’re seeing the advent or the growth of the Chinese cloud. So China wants to have its own cloud, and we’re leveraging a joint venture in China that’s Guizhou to participate in the growth of that cloud. So as a new participant in the data center space, we want to figure out how do we build scale and get some of these big trends, get on the front-end of these big transitions, so we’re doing that”

First time in a long time that transistor leadership is not happening in the PC space first

“And then the second – the third one, the final one is that this is probably the first time in the history of semiconductors where transistor leadership is not occurring in the PC space first. So we’re seeing through Samsung and TSMC particularly extremely competitive just raw transistor capability, which we think enables us to compete not only in the handset space, but we can leverage that investment to see it – a real disruption, we think, competitive disruption, in the data center space.”