South Korea's corporate watchdog said Thursday that United States-based chipmaker Qualcomm must make several commitments to get approval for its takeover of the global Dutch company NXP here, including the sale of NXP's standard essential patents.

In 2016, Qualcomm, which specializes in mobile chips, offered to buy semiconductor manufacturer NXP, which mostly makes products for NFC connectivity, for some US$38 billion.

Last year, Qualcomm sought approval for the takeover in South Korea.

The Fair Trade Commission (FTC), South Korea's antitrust agency, stipulated that Qualcomm must not acquire NXP's standard essential patents for NFC and various system patents.

Qualcomm is also prohibited from selling bundled products or changing NXP's licensing, according to the FTC. Qualcomm must pledge to make it possible for rival companies to function with NXP products, the FTC said.

Related industry players have been expressing concerns that after the NXP acquisition, Qualcomm could enjoy great influence and a high market share in cellular chipsets and the NFC sector.

By: DocMemory
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