JACK: THE WHITE HOUSE SOUNDING
THE ALARM ON THE GLOBAL
SEMICONDUCTOR CHIP SHORTAGE.
ISN’T GOING AWAY ANYTIME SOON
AFFECTING PRODUCTION IN SEVERAL
INDUSTRIES INCLUDING
AUTOMAKERS, SMARTPHONES AND
MEDICAL EQUIPMENT.
THE HEAD A ONE OF THE LARGEST
CHIP MANUFACTURERS IN THE
WORLD, QUALCOMM CEO CRISTIANO
RAMON BUT A CHARMER SECRETARY
SAID THE CHIP SHORTAGE IS
LIKELY TO LAST OR NEXT YEAR AND
LONGER.
IS THERE ANYTHING YOU THINK THE
US SHOULD DO TO ADDRESS THE
SHORTAGE?
THANKS FOR BEING HERE.
CRISTIANO: HAPPY TO BE HERE.
ONE THING WE LEARNED DURING THE
CURRENT CHIP SHORTAGE IS CHIPS
ARE IMPORTANT.
THEY ARE PART OF OUR ECONOMIC
GROWTH, SUPPOSED TO BE IN
EVERYTHING.
THE REALITY IS WE NEED TO BUILD
A GEOGRAPHICALLY DIVERSIFIED
RESILIENT SUPPLY CHAIN.
THE UNITED STATES LEADING WITH
THE US CHIPS ACT BUT IF IT
DOESN’T GET APPROVED SOON, IN
THE SENATE AND THE HOUSE,
CAPACITY WILL GET BUILT
ELSEWHERE.
I THINK THERE’S A SENSE OF
URGENCY.
I AGREE WITH THE COMMERCE
SECRETARY.
WE NEED TO MOVE THAT INTO
LEGISLATION.
WORKING ALONGSIDE THE EUROPEAN
CHIPS ACT TO BUILD A LOT OF
CAPACITY, THE INDUSTRY HAS TO
DOUBLE THE TOTAL SUM CONDUCTOR
THROUGHPUT WITHIN THE NEXT
DECADE.
GREAT OPPORTUNITY TO BUILD ON
THE RIGHT PLACES.
JACK: ARE YOU OPTIMISTIC THAT
CAN HAPPEN?
CRISTIANO: I AM A LITTLE
WORRIED ABOUT IT BUT I AM
HOPEFUL.
JACK: WE HAD A HUGE JUMP IN
DEMAND AND A CRIMP IN SUPPLY.
WHICH OF THOSE PROBLEMS IS
BIGGER?
CRISTIANO: WHAT WE SIZE DEMAND
DRIVEN.
THE PACE OF DIGITAL
TRANSFORMATION IS HAPPENING
VERY FAST, ACCELERATED BY THE
PANDEMIC, IMPACTING ALL
INDUSTRIES.
IF THIS WAS SEMICONDUCTOR
CONSUMPTION, THINK ABOUT CARS,
THE CAR YOU BUY TODAY HAS MORE
THAN THE PRIOR MODEL.
ONE IS COMING.
WE NEED MORE SEMICONDUCTORS.
JACK: THE COMMERCE SECRETARY
OUT OF THE 2024TH BEFORE WE
STRAIGHTEN OUT.
YOU ARE DOING BETTER AT
QUALCOMM.
11 MONTHS ON THE JOB AS CEO AND
THIS MIGHT BE SOLVED BY 2023.
WHAT ARE YOU DOING DIFFERENT?
CRISTIANO: WE ARE TO EARLY,
VERY VERY EARLY IN THE PROCESS
INTO THE SUPPLY CHAIN CRISIS.
WE TOOK A LOT OF STAFFS,
CO-INVESTED WITH MANUFACTURING
PARTNERS TO BUILD MORE
CAPACITY, WE DESIGNED OUR
PRODUCTS TO MAKE USE OF EVERY
CAPACITY AVAILABLE OUT THERE.
HAVING SAID THAT I HAVE MORE
DEMAND THAN SUPPLY FOR MY
CHIPS.
JACK: GIVE US A LOOK INTO THE
FUTURE WITH AUTOMOTIVE.
THOUGH IN CAR EXPERIENCE HAS
GOTTEN BETTER THANKS TO CHIPS
BUT IN THE FUTURE CARS WILL BE
TALKING TO EACH OTHER, THE
STOPLIGHT, THE PARKING SPACE.
WHAT ARE THE COOL THINGS DOWN
THE ROAD?
CRISTIANO: IT IS A GREAT
OPPORTUNITY NOT ONLY TO MAKE
TRANSPORTATION MORE EFFICIENT
BUT ALSO MAKE IT MORE SAFE.
THERE IS THIS TECHNOLOGY WE
DEVELOP CALLED 5G CV 2 X.
YOU SELL MORE CONNECTIVITY IN
EVERY CAR, THE V 2 X MEANS THE
CAR CONNECTS TO ANOTHER CAR OR
PEDESTRIANS OR INFRASTRUCTURE.
THE LAST PIECE, THE TRAFFIC
LIGHT MEANS TELL THE CAR ADJUST
YOUR SPEED TO GET TO GREEN.
THIS HAPPENS AT THE
INTERSECTION.
OR YOU CAN POPULATE THE WORLD
WITH SIGNS OR PARKING SPACES,
AND INCREDIBLY EXCITING FUTURE
WITH THIS TECHNOLOGY AND SOON
IT WILL GET DEPLOYED.
JACK: ANOTHER PLACE FOR
TECHNOLOGIES GLASSES, CONFERENCE ROOM, WHAT IS THE
CONFERENCE ROOM, WHAT IS THE
COOL STUFF IN NEW YORK?
CRISTIANO: WE CONNECTED
PHYSICAL AND DIGITAL SPACES.
YOU HAVE THE META VERSE FOR
SOCIAL, THE META-VERSE FOR THE
ENTERPRISE.
YOU CAN SEE DIGITAL COINS OF
EVERYTHING AND AUGMENTED
REALITY GLASSES, DEVICES.
THEY ARE ALREADY MATERIAL TODAY
BUT WE ARE JUST AT THE
BEGINNING OF THAT AND I BELIEVE
GLASSES WHEN YOU HAVE DEVICES
THAT LOOK LIKE THIS IT IS GOING
TO BE THE NEXT COMPUTING
PLATFORM AND IS BECAUSE PHONES.
JACK: IT WOULD BE NICE NOT TO
WEAR THE HEAD SITE.
JACK:
CRISTIANO: COMMUNICATION
BETWEEN TWO PEOPLE.
WE USED TO TALK ON OUR PHONES
LIKE THIS, THEN WE ARE TEXTING,
NOW HOLDING THE PHONE LIKE
THIS.
IN THE FUTURE RENDER SOMEBODY
IN FRONT OF YOUR EYES LIKE YOU
AND I TALKING NOW.
VERY EXCITING FUTURE FOR
AUGMENTED REALITY IN THE META
VERSE WILL GET SCALE.
JACK: I WANT TO PIVOT WITH YOUR
STOCK.
YOUR MOST RECENT EARNINGS
REPORT YOU BLUE OUT OF THE
WATER, 40% REVENUE GROWTH, 69%
EARNINGS GROWTH AND WALL STREET
VALUING US TEN TIMES THOSE
EARNINGS, WHAT IS THE STREET
MISSING?
CRISTIANO: THE COMPANY HAS BEEN
MISUNDERSTOOD.
THERE IS A NEW QUALCOMM.
IT IS A MISTAKE TO SAY THIS IS
A COMMS COMPANY FOR THE MOBILE
INDUSTRY.
IT IS TRUE.
ALWAYS THE COMPANY SETTING THE
PACE OF INNOVATION AND MOBILE BUT THE REALITY IS TECHNOLOGY
BUT THE REALITY IS TECHNOLOGY
FINDING DEMAND AND A LOT OF NEW
GROWTH MARKETS AND REALLY
QUALCOMM IS NOT JUST FOR
MOBILE.
WE ARE CONNECTED, PROCESSOR
COMPANY FOR THIS FUTURE
CONNECTED EDGE AND IF YOU LOOK
AT THE COMPANY RIGHT NOW, WE
HAVE GROWTH IN AUTOMOTIVE, IOT
FOR CONSUMER, INTERNET
NETWORKING, THE EDGE NETWORKING
AND INDUSTRIAL WHICH IS THE
CONVERSATION OF DIGITAL
TRANSFORMATION IT SURPRISES.
I THINK THE COMPANY HAS AN