*

Qualcomm ( QCOM ) aims for $22 billion revenue from non-smartphone

products by 2029

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Company diversifies with automotive, PC, and IoT chip

markets

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Apple's ( AAPL ) modem development impacts Qualcomm's ( QCOM ) smartphone

chip

business

(Updates shares in paragraph 8)

By Stephen Nellis

Nov 19 (Reuters) - Qualcomm ( QCOM ) said on Tuesday it

was "positive" on President-elect Donald Trump's incoming

administration and not concerned that proposed U.S. tariffs on

China would dampen its business in the country from which it

derives nearly half its revenue.

Qualcomm ( QCOM ) executives made the remarks at an investor event in

New York during which the company forecast $22 billion in

combined revenue over the next five years from laptops, cars and

other products outside its current stronghold in smartphones, a

sharp growth from its latest fiscal year.

During a question-and-answer session with analyst, Alex

Rogers, who runs Qualcomm's ( QCOM ) technology licensing business, said

the San Diego, California, company had a "great relationship"

with Trump's previous administration, which blocked a hostile

takeover bid for Qualcomm ( QCOM ) from rival Broadcom.

"We expect a good relationship going forward. We're very

positive on the recent pick for Commerce Secretary, so we are

expecting to have a good relationship and to be engaged as we

have been through this past administration," Rogers said,

referencing Trump's expected nomination of Howard Lutnick.

Responding to another analyst question, Qualcomm ( QCOM ) Chief

Executive Cristiano Amon said he does not foresee problems

competing for business in China, which accounted for 46% of

Qualcomm's ( QCOM ) nearly $40 billion in revenue in its most recent

fiscal year. Trump has proposed tariffs of 60% on Chinese

imports, which economists have said China might respond to with

tariffs of its own on American goods.

For now, Amon said Chinese firms are buying Qualcomm's ( QCOM )

automotive chips, and that the last round of Trump tariffs on

Chinese goods did not hurt Qualcomm ( QCOM ).

"As geopolitics started to become front and center in the

U.S.-China conversation, the Qualcomm ( QCOM ) partnerships with China

actually increased, as we expanded to other industries" beyond

smartphones, Amon said.

Qualcomm ( QCOM ) shares were largely unchanged in after-hours

trading after the comments.

Qualcomm ( QCOM ) has been burnt before by U.S.-China trade tensions.

In 2018, it was forced to walk away from a $44 billion deal to

buy NXP Semiconductors - which would have been the biggest chip

takeover globally - after failing to secure Chinese regulatory

approval.

In fiscal 2024 that ended Sept. 29, Qualcomm ( QCOM ) reported

revenue totaling $8.32 billion from the same set of chip

categories, which made up just a third of the $24.86 billion it

made from smartphone chips.

Qualcomm ( QCOM ) is the world's top supplier of mobile phone chips

that connect handsets to mobile data networks.

The company has been working to diversify its offerings,

winning deals with companies including General Motors ( GM ) to

supply chips for the dashboards and driver-assistance systems in

vehicles, and collaborating closely with Microsoft ( MSFT ) and

PC makers to compete against Intel ( INTC ) and Advanced Micro

Devices ( AMD ) in the laptop market.

Qualcomm ( QCOM ) is also grappling with the long-term decline of its

business from Apple ( AAPL ), which is developing its own

wireless modem chips. Akash Palkhiwala, Qualcomm's ( QCOM ) finance chief

and chief operating officer, said the new categories would

offset those sales losses.

"This growth in annual revenue far exceeds the scale of the

Apple ( AAPL ) chipset business revenues today," he said during the

event.

Qualcomm ( QCOM ) said it expects $8 billion in automotive chip

revenue by fiscal 2029, and $4 billion from PCs. It expects $2

billion from augmented and mixed-reality headsets, such as those

made by Meta Platforms that already feature Qualcomm ( QCOM )

chips.

The company expects $4 billion in industrial chips that help

connect factory machines to networks, as well as $4 billion for

chips for the internet-of-things (IoT), a broad category that

includes devices such as wireless headphones and smart home

gadgets such as cameras.

In the just reported fiscal 2024, the company posted a dip

in IoT revenue to $5.4 billion, sharply missing its own forecast

from a similar investor day in 2021 of $9 billion by fiscal

2024.

Qualcomm's ( QCOM ) shares have risen about 13.7% to this year, only

about half of the 25% rise in the Nasdaq Composite.

Its business remains highly concentrated in smartphones.

Together with Apple ( AAPL ), Samsung Electronics and Xiaomi

help make up more than half of the company's $39.96

billion in revenue for its most recent fiscal year.