The Fair Trade Commission (FTC) announced Friday that it has settled with Qualcomm, a leading US-based manufacturer of smart phone chips, on reduced fines.
In October 2017, the FTC fined Qualcomm NT$23.4 billion (US$775 million) for inappropriate patent grants and for handing out exclusive discounts. This is the biggest fine the FTC has ever handed out.
After the fine was announced, Qualcomm held off meetings with Taiwanese tech companies in 5G technology. The economics ministry urged the FTC to lower the fine given Qualcomm’s influence in Taiwan’s electronics sector.
The FTC said that Qualcomm has promised to rectify past violations and resign license clauses with domestic chip manufacturers. As part of the settlement, Qualcomm will now pay NT$2.73 billion (US$89 million), and also invest US$700 million in Taiwanese manufacturing plants and education over the next five years.
Qualcomm said it will work closely with local manufacturers and universities in the future.