WEBVTT - Cristiano Amon 0:00:00.080 --> 0:00:01.840 If we were in a battle together, he will be 0:00:01.880 --> 0:00:04.960 an incredible sniper shooter. I will just shoot into a 0:00:05.040 --> 0:00:10.080 run off ammunition. That's Qualcom's new CEO, Cristiano Aman, on 0:00:10.119 --> 0:00:13.560 the difference between himself and the chip maker's former CEO, 0:00:13.760 --> 0:00:17.279 Steve Mollenkom. Hi everyone, I'm Emily Chang and this is 0:00:17.280 --> 0:00:20.120 Bloomberg Studio one point oh, a series where I speak 0:00:20.120 --> 0:00:23.720 with the biggest influencers in technology and media. Over the 0:00:23.800 --> 0:00:26.480 last decade, I've had in depth conversations with the very 0:00:26.560 --> 0:00:29.840 people shaping the future of business, hearing their vision for 0:00:29.880 --> 0:00:33.000 what comes next. Today we talk all things chips as 0:00:33.000 --> 0:00:35.159 we speak to the newly minted CEO of one of 0:00:35.159 --> 0:00:38.680 the leading companies in the semiconductor industry. Their chips are 0:00:38.680 --> 0:00:41.520 in so many of the devices we use every day, 0:00:41.800 --> 0:00:44.800 but Qualcom is still far from being a household name. 0:00:45.360 --> 0:00:49.320 Christiano Aman, Qualcom's new CEO, wants to change that. He 0:00:49.360 --> 0:00:51.800 grew up in Brazil, got his first job in Japan 0:00:51.880 --> 0:00:54.760 in the mobile industry, and never left. He served at 0:00:54.840 --> 0:00:58.920 Qualcom through prolonged legal battles with one of its biggest customers, Apple, 0:00:59.280 --> 0:01:01.080 and hopes to USh You're in a new era for 0:01:01.160 --> 0:01:06.560 Qualcom that expands beyond mobile, two cars, cloud computing, IoT, VR, 0:01:06.720 --> 0:01:09.160 A R and more. How does he plan to do it? 0:01:09.440 --> 0:01:11.720 Joining me on this edition of Bloomberg Studio. At one point, Oh, 0:01:11.920 --> 0:01:20.000 Qualcom CEO Christiano, I'm on, Christiano. Is so great to 0:01:20.040 --> 0:01:21.960 have you here, Very happy to be here. Get to 0:01:21.959 --> 0:01:24.280 see you in personal Good to see you in person. 0:01:24.520 --> 0:01:26.520 And we talked in person when you were a president. 0:01:26.640 --> 0:01:31.559 But things have changed. Lot has changed, but it's good. 0:01:31.800 --> 0:01:33.600 Is life different or not that different? So it's a 0:01:33.640 --> 0:01:36.039 little bit different. I was busy before, you know, it's 0:01:36.080 --> 0:01:39.400 been running into some my conductor business has been present 0:01:39.480 --> 0:01:42.920 since a team, but it is different, kind of feel 0:01:42.959 --> 0:01:45.680 the weight of the responsibility of the CEO job. Having 0:01:45.760 --> 0:01:50.360 fun but busy, especially as the company is transforming. But 0:01:51.120 --> 0:01:53.200 I'm still the same guy. I want to talk about 0:01:53.240 --> 0:01:55.880 that guy. What was your upbringing? Like, what what kind 0:01:55.920 --> 0:01:57.880 of kid were you? You know, I was a very 0:01:57.920 --> 0:02:03.200 active kid. I was been somewhat hyperactive. I I I 0:02:03.240 --> 0:02:06.680 guess I chose engineering, uh because I think my dad 0:02:06.720 --> 0:02:09.160 was an engineer. But my mom would tell me that 0:02:09.200 --> 0:02:12.000 we'll break apart all the toys and put them back together. 0:02:12.040 --> 0:02:14.240 So I guess was a sign I want to do 0:02:14.320 --> 0:02:17.400 something with engineering. But I was a normal kid. I 0:02:17.520 --> 0:02:20.000 like as a kid, come back to school, you know, 0:02:20.120 --> 0:02:22.919 play on the streets, UH with UH with the other 0:02:23.000 --> 0:02:25.200 kids Brazil. A lot of things that you do. You 0:02:25.320 --> 0:02:28.960 just play soccer, uh and UH done a lot of that. 0:02:29.160 --> 0:02:33.799 But yeah, what's uh? I had wonderful memories off the 0:02:33.880 --> 0:02:36.400 time in Brazil. You got your first job out of 0:02:36.400 --> 0:02:39.040 college in Japan was at the beginning of the cell 0:02:39.040 --> 0:02:42.519 phone and Uh, I got a job. I was hired 0:02:42.560 --> 0:02:45.480 by a Japanese company anyc uh, it's one of our 0:02:45.520 --> 0:02:48.680 customers today. That was the beginning where they were deploying 0:02:48.720 --> 0:02:52.400 analog settler in Brazil. I remember, you know, and I 0:02:52.440 --> 0:02:54.840 was working there and I had a cell phone, and 0:02:54.960 --> 0:02:56.680 UH it was people said, what is this? You know, 0:02:56.720 --> 0:02:58.840 there was a very few people with cell phone at 0:02:58.840 --> 0:03:00.920 the time. What I did realize is, you've actually always 0:03:00.919 --> 0:03:03.600 been working in the mobile industry since the beginning of 0:03:03.639 --> 0:03:05.799 your currents, the beginning of my career, since before mobile 0:03:05.919 --> 0:03:11.160 was mobile as we know it. Has it unfolded the 0:03:11.200 --> 0:03:14.720 way you imagined? No, I don't think nobody can can 0:03:14.760 --> 0:03:16.840 say that we we always knew And this would go 0:03:16.880 --> 0:03:20.120 back to I think my early Qualcom career, we always 0:03:20.200 --> 0:03:24.720 knew about the incredible potential of the wireless industry. But 0:03:24.880 --> 0:03:27.399 you know, if you think about where we started and 0:03:27.639 --> 0:03:30.960 in getting everyone a telephone, right, can everybody in the 0:03:31.000 --> 0:03:34.480 ward have a telephone without wires? Once you get to that, 0:03:34.639 --> 0:03:36.400 you'll think about, well, what if we connect us to 0:03:36.440 --> 0:03:39.400 the internet. The Internet was also you know, starting at 0:03:39.440 --> 0:03:43.560 that time to think what this wireless industry is. Today 0:03:43.600 --> 0:03:45.360 we have a computer in prove of our hands, and 0:03:46.320 --> 0:03:50.240 the transformation of this society that created by the smartphone. 0:03:50.280 --> 0:03:53.560 I think there's not something we could predict it. That's 0:03:53.600 --> 0:03:56.440 incredible and I feel very fortunate to be working in 0:03:56.480 --> 0:04:01.320 seller my entire career. You joined Qualcom more than years ago. 0:04:01.680 --> 0:04:03.720 How did you rise through the ranks? I guess I 0:04:03.760 --> 0:04:06.200 made the right choices to be working on things that 0:04:06.280 --> 0:04:10.960 were important. I've been Uh. I always had a passion 0:04:11.800 --> 0:04:14.119 for technology. I think one of the things that helped 0:04:14.160 --> 0:04:17.480 me within my career Qualcom is UM. I don't know 0:04:17.480 --> 0:04:19.560 if it's true they tell me, I do that. Do 0:04:19.600 --> 0:04:22.760 we be able to see through corners, think strategically about things? 0:04:22.839 --> 0:04:26.599 And uh? But yes, it's Uh. It's an incredible journey 0:04:26.640 --> 0:04:30.839 and Uh, I love this company. Quaco's an incredible place 0:04:30.920 --> 0:04:33.440 for engineers and for me to get to the CEO, 0:04:33.680 --> 0:04:37.719 it's uh an incredible achievement, both professionally and personal. I 0:04:37.720 --> 0:04:42.279 think there's also somebody come from Brazil with Latin America 0:04:42.440 --> 0:04:45.400 bringing there. They're very few I think of us that 0:04:45.640 --> 0:04:48.680 roles to that position. So I also feel an incredible 0:04:48.680 --> 0:04:53.960 responsibility off off the weights have been you know, somebody 0:04:54.000 --> 0:04:55.600 that people can look at and say, look, we can 0:04:55.600 --> 0:04:58.240 do that. What's it like being an immigrant CEO? Do 0:04:58.279 --> 0:05:02.440 you think there's something different about your experience when you 0:05:02.560 --> 0:05:06.120 have a different upbringing. Uh. You can put that to 0:05:06.120 --> 0:05:09.919 your advantage as having a collection of experience that you 0:05:09.920 --> 0:05:14.400 can bring to place. It's not easy, um, doing business 0:05:14.560 --> 0:05:18.200 in Brazil. You know, sometimes you don't have the same resources. 0:05:18.240 --> 0:05:21.560 You have a lot of adversity. Uh. Growing up we 0:05:21.640 --> 0:05:25.320 had hyper inflation, you know, after at some point like 0:05:26.360 --> 0:05:29.640 a month, and you have to deal with adversity and 0:05:29.680 --> 0:05:33.520 you have to you have to make decision when the 0:05:33.600 --> 0:05:36.760 odds are not great. I took that with me and 0:05:36.800 --> 0:05:40.160 I think it had helped me and my career. Your predecessor, 0:05:40.200 --> 0:05:44.280 Steve Molenkov, had a more laid back more cautious style. 0:05:44.560 --> 0:05:47.560 Was very good at dealing with the thorny legal issues 0:05:47.600 --> 0:05:50.600 that Qualcom had to deal with, but didn't love the spotlight. 0:05:51.200 --> 0:05:54.479 How are your leadership styles different? We work so well 0:05:54.520 --> 0:05:57.640 together because I think we're very complimentary. I think Steve 0:05:57.720 --> 0:06:02.560 it's very thoughtful, very analytical. You know. I think if I, 0:06:02.760 --> 0:06:05.000 you know, in a positive way, if I use this metaphor, 0:06:05.080 --> 0:06:07.479 I think Steve would be uh, if we were in 0:06:07.520 --> 0:06:11.000 a battle together, he would be an incredible uh sniper shooter. 0:06:11.520 --> 0:06:13.839 I was just I was just shooting to a run 0:06:13.839 --> 0:06:19.120 of ammunition and uh. But we work very very well together. 0:06:19.240 --> 0:06:23.839 I will say my my style is, um, you know, 0:06:23.920 --> 0:06:26.480 I I like doing many things at the same time. 0:06:26.560 --> 0:06:29.840 I think that's why I have been successful and been 0:06:29.920 --> 0:06:33.680 very focused in driving the versific diversification of Qualcom as 0:06:33.720 --> 0:06:38.000 we go to all those different industries. Um, it's uh, 0:06:38.279 --> 0:06:40.800 it's not like I it's not like I like the spotlight, 0:06:40.880 --> 0:06:42.880 as I think all of us in this industry get 0:06:42.960 --> 0:06:45.080 to get used to, you know, to do this. But 0:06:45.160 --> 0:06:48.719 I feel I have an incredible opportunity and almost like 0:06:48.760 --> 0:06:53.240 an obligation to tell the story about Qualcom companies changing. 0:06:53.279 --> 0:06:55.720 We have a new story to tell and I I 0:06:55.760 --> 0:06:58.320 feel in the CEO position, I have an opportunity to 0:06:58.360 --> 0:07:01.240 do that. You're a lot more Fourth, right, I found 0:07:01.279 --> 0:07:03.880 about the competition, and I wonder, is that is that 0:07:03.920 --> 0:07:06.480 how you motivate the team? Is that how you motivate engineers? 0:07:07.040 --> 0:07:10.000 Our industry changed so fast. Now we've been working, we'll 0:07:10.000 --> 0:07:13.240 be working on a chip for four years. Um we 0:07:13.320 --> 0:07:15.480 have the four years before the chip, every seed the 0:07:15.520 --> 0:07:17.280 light of day, we have to think about what the 0:07:17.360 --> 0:07:19.920 market will look. We want at that time, what the 0:07:19.960 --> 0:07:22.960 market will be. And then we launched this incredible chip 0:07:23.040 --> 0:07:25.120 that we're working for four years and he can get 0:07:25.120 --> 0:07:27.160 obsolete in twelve months and we have to do something 0:07:27.200 --> 0:07:30.720 else right, So we have to be reinventing ourselves. And 0:07:30.760 --> 0:07:34.520 for that, I think the key ingredient for success is 0:07:34.560 --> 0:07:38.200 to never be complacent to our being challenged ourselves. Competition 0:07:38.240 --> 0:07:40.400 has always been good for Quacom, It's good for everyone. 0:07:40.480 --> 0:07:43.360 I think it's keep us honest. He keep us driving 0:07:43.400 --> 0:07:46.480 harder and trying to take measure risks to do something 0:07:46.480 --> 0:07:49.960 different and to differentiate ourselves and how it's at face 0:07:50.040 --> 0:07:55.840 competition that way. This is my conversation with the CEO 0:07:55.880 --> 0:07:58.840 of Qualcom Christiano, I'm on coming up, we get a 0:07:58.880 --> 0:08:01.360 reality check on where we are in the chip shortage 0:08:01.400 --> 0:08:05.160 and when will supply catch up with demand? Plus, after 0:08:05.360 --> 0:08:08.120 years of legal battles with Apple, what's the status of 0:08:08.120 --> 0:08:11.560 the relationship with Ballcom now? I'm Emily Chang and this 0:08:11.680 --> 0:08:27.720 is Bloomberg Studio one point. Oh, stay with us. Qualcom's 0:08:27.800 --> 0:08:32.000 last few years were dominated by really big legal challenges. 0:08:32.760 --> 0:08:36.040 Are those legal challenges behind you for good? All of 0:08:36.080 --> 0:08:39.160 those are behind us right now. I would argue that 0:08:39.200 --> 0:08:43.080 we're especially as relate to our licensing business. We have 0:08:43.160 --> 0:08:46.720 one of the most stable times in the history of 0:08:46.720 --> 0:08:49.520 the company. I've been with a company since the very beginning, 0:08:49.960 --> 0:08:52.560 and in the history of company, we never had more 0:08:52.600 --> 0:08:55.760 stability in the licensing business. And I'll argue that our 0:08:55.880 --> 0:08:59.800 model has been battle hardened by all regulators across the 0:09:00.480 --> 0:09:04.840 and UH and I we feel very good about, you know, 0:09:04.920 --> 0:09:09.600 having the value for our licensing business recognized, but also 0:09:10.480 --> 0:09:12.880 what we bring to the industry and UH and we 0:09:13.040 --> 0:09:15.800 feel good about it. Your relationship with Apple in particular 0:09:15.920 --> 0:09:19.160 went through a few difficult years, bitter lawsuits. Where is 0:09:19.200 --> 0:09:22.400 that relationship today? Relationship is great. You know, we have 0:09:23.960 --> 0:09:27.040 a multier agreement with them. There's a lot more to 0:09:27.200 --> 0:09:31.280 Qualcom than the Apple relationship. You know. Qualcom has an 0:09:31.320 --> 0:09:36.280 incredible opportunity in mobile with five G, especially as new 0:09:36.320 --> 0:09:40.200 players are rising. Um it's incredible to see companies like 0:09:40.200 --> 0:09:42.240 shell Me becoming the number two in the world in 0:09:42.280 --> 0:09:45.320 Europe now they're probably this month their number one in shipments, 0:09:45.320 --> 0:09:50.240 which is incredible. And we are becoming the essential ingredient 0:09:50.520 --> 0:09:54.760 for all of this cloud economy that is upon us 0:09:55.120 --> 0:09:57.720 by connecting everything on the edge, and that's part of 0:09:57.760 --> 0:10:01.600 how the company is diversifying. So we're very happy about that. 0:10:01.679 --> 0:10:03.719 And I think the company at the very end will 0:10:03.720 --> 0:10:07.440 be a company of many relationships. People don't realize that 0:10:07.600 --> 0:10:11.280 Qualcom chips power so many of the devices that we 0:10:11.360 --> 0:10:14.400 are so dependent on. Do you think Qualcom should be 0:10:14.440 --> 0:10:19.319 more of a household name like Apple, like Google, like Facebook. Look, 0:10:19.400 --> 0:10:22.120 I'm very partial, so the answer will be absolutely yes. 0:10:22.280 --> 0:10:26.280 And Uh, we have this incredible semiconductor crisis which has 0:10:26.360 --> 0:10:29.600 been very difficult to get out of it. If I 0:10:29.640 --> 0:10:33.760 can point one positive thing that came out of this 0:10:33.840 --> 0:10:38.720 crisis is uh, the broader society realized the chips are 0:10:38.800 --> 0:10:42.720 very important and the role the semiconductor companies play chips 0:10:42.720 --> 0:10:45.000 are important that people are interested to know about chips, 0:10:45.000 --> 0:10:48.199 and I think that creates opportunity for people to realize 0:10:48.440 --> 0:10:52.440 how broad qualcom presence is. I think beyond funds, where 0:10:52.440 --> 0:10:57.080 are we in the chip shortage now? Better? Uh, We're 0:10:57.080 --> 0:10:59.520 not out of it. Um. You know, we have said that. 0:10:59.600 --> 0:11:03.680 Consider simply to the past two earnings calls that uh, 0:11:03.720 --> 0:11:06.240 we see material improvements coming to us at the end 0:11:06.280 --> 0:11:09.400 of this year, the calendar year, and we are going 0:11:09.480 --> 0:11:12.440 to enter two thousand twenty two with a much more 0:11:12.440 --> 0:11:16.040 balanced equation between supply and demand for all chips are 0:11:16.080 --> 0:11:18.840 just some chips for the majority of the chips, I 0:11:18.880 --> 0:11:22.480 think the except there are going to be stio exceptions. Reality, Emily, 0:11:22.559 --> 0:11:26.960 we're short on everything, like on every single product across 0:11:27.240 --> 0:11:30.920 every single UH industry that we participate in, we're short. 0:11:31.280 --> 0:11:34.719 If SAM conductor companies come in and say we are 0:11:34.760 --> 0:11:37.600 not short, you should be worried about them, because I 0:11:37.640 --> 0:11:40.760 think the demand is very high across all industry. We 0:11:40.840 --> 0:11:46.480 see this accelerated digital transformation happening, and we were able 0:11:46.520 --> 0:11:50.160 to be fortunate to have scale to sourcing, multi sourcing 0:11:50.200 --> 0:11:53.960 put capacity expansion plans in place, and those are gonna 0:11:54.000 --> 0:11:55.880 come to fruition as we get to the end of 0:11:55.880 --> 0:11:58.640 the calendar year. So as we enter two thousand twenty two, 0:11:59.040 --> 0:12:01.800 we're going to see for the absolutely majority of our business, 0:12:01.840 --> 0:12:04.800 supply and demand will start to manage. Which chips are 0:12:04.840 --> 0:12:07.520 the biggest exceptions which are going to take the longest 0:12:07.559 --> 0:12:11.960 to come back. There has been a very broad industry 0:12:12.520 --> 0:12:15.760 shortage of power management. I see also when you think 0:12:15.800 --> 0:12:19.800 about electrification electric cars, you know, the batteries use a 0:12:19.800 --> 0:12:22.679 lot of power management i c s and those are 0:12:23.600 --> 0:12:28.080 capacity was finite. The industry has not been investing in 0:12:28.200 --> 0:12:30.679 that capacity. So is that why Elon Musk has been 0:12:30.679 --> 0:12:36.040 complaining about this? I think in general everyone is complaining about, uh, 0:12:36.160 --> 0:12:40.400 the shortage of legacy technology and uh, but even those 0:12:40.440 --> 0:12:42.920 are going to come online and uh, we'll feel good 0:12:42.920 --> 0:12:44.880 about where we're going to be in two thousand twenty two. 0:12:44.920 --> 0:12:48.040 But are you saying that chips in cars in particular 0:12:48.360 --> 0:12:51.760 are going to be have more difficulty? Uh? What happened 0:12:51.800 --> 0:12:54.040 to the pandemic and you caught you know, you had 0:12:54.760 --> 0:12:59.760 disconnect between supply and demand. But the percentage of digital 0:13:00.120 --> 0:13:03.600 in course are increasing at a very fast space. I 0:13:03.600 --> 0:13:06.679 think the car industry. Restaurants, forming electronics in the car 0:13:06.840 --> 0:13:09.920 become extremely important. That's part why our automotive business is 0:13:09.920 --> 0:13:13.079 growing so fast. And I think the car in generous 0:13:13.080 --> 0:13:17.040 is consuming more I see more silicon, and that's why 0:13:17.080 --> 0:13:19.720 this industry is going to take a little longer to recover. 0:13:19.840 --> 0:13:23.920 But you know, even in general, say globally across all industries, 0:13:24.480 --> 0:13:26.960 we're going to be out of this uh crisis as 0:13:27.000 --> 0:13:29.319 we get to the second half two two. I think 0:13:29.480 --> 0:13:33.080 the automotive industry is probably gonna take throughout two thousand 0:13:33.160 --> 0:13:37.560 twenty two to recover uh. We We also see pockets 0:13:37.679 --> 0:13:41.880 within consumer electronics that there's also going to take longer 0:13:41.920 --> 0:13:45.280 to recover. But in general, as we get to the 0:13:45.360 --> 0:13:48.800 first half of twenty two, I think this entire crisis 0:13:48.880 --> 0:13:51.760 is behind us. You help bring the industry together on 0:13:51.880 --> 0:13:55.319 five G. Five G is now here. Is this more 0:13:55.360 --> 0:13:57.559 than just a speed bump or a six G around 0:13:57.600 --> 0:14:00.320 the corner. It's much more than a speed bump. It 0:14:00.360 --> 0:14:05.360 starts with phones. Phones. I would argue that transition is 0:14:05.440 --> 0:14:09.520 almost already done from the premium and the high tiers. 0:14:10.480 --> 0:14:16.640 The biggest features of five G are not yet uh 0:14:17.440 --> 0:14:21.720 uh in scale and they're gonna be very transformative. Think 0:14:21.760 --> 0:14:25.280 about companies now moving to hoteling and people have work 0:14:25.320 --> 0:14:27.840 from anywhere. That's more than a speed bump. Is about 0:14:27.920 --> 0:14:30.640 bringing the power of the cloud to every device. So 0:14:30.720 --> 0:14:32.800 when six G how far away is that? We are 0:14:32.800 --> 0:14:36.080 already working on six G. We you know, we measure 0:14:36.160 --> 0:14:38.760 every decade you have a new G. Five G was 0:14:38.840 --> 0:14:42.920 originally scheduled to launch in two thousand twenty. We accelerated 0:14:42.920 --> 0:14:45.400 by one year, were launched a nineteen. You should think 0:14:45.400 --> 0:14:50.400 about by two thousand thirty, you should be the time 0:14:50.480 --> 0:14:54.480 for six G uh to come to the spotlight. But 0:14:54.680 --> 0:14:56.840 we have some ways to go. You've told us that 0:14:56.880 --> 0:14:59.800 part of what we'll define your tenure and Qualcom success 0:14:59.800 --> 0:15:05.080 in it is moving into new markets, whether it's cars, PCs, networking. 0:15:05.400 --> 0:15:07.800 What's going to break out first and what will take longer. 0:15:08.840 --> 0:15:13.320 We are definitely already there with auto. We have a 0:15:13.480 --> 0:15:18.400 ten billion dollars contracted pipeline, we have one billion into revenues. 0:15:19.400 --> 0:15:23.840 We're scratching the surface on COYOT, and we have some 0:15:24.200 --> 0:15:27.600 new opportunities that could materialize any moment, like the conversions 0:15:27.640 --> 0:15:31.440 of phones and PCs. Meantime ARM which is of course 0:15:31.480 --> 0:15:34.160 best known for its mobile ship technology, hugely important part 0:15:34.200 --> 0:15:37.480 of the ecosystem. Qualcom is a big customer. ARM has 0:15:37.480 --> 0:15:41.080 been a neutral party up to this point. In videos 0:15:41.160 --> 0:15:44.000 trying to buy ARM and the CEO of Nvidio, Jensen 0:15:44.080 --> 0:15:47.840 Wong says, doesn't plan for that neutrality to change. But 0:15:48.880 --> 0:15:50.840 you've said you don't think that change of ownership is 0:15:50.840 --> 0:15:53.720 a good thing. Why not? We don't any question Orm 0:15:53.720 --> 0:15:56.640 already one. If you think about phones day one, it's 0:15:56.680 --> 0:16:01.640 all powered by ARM, CPUs, compute euters, it's coming. You 0:16:01.720 --> 0:16:04.040 look at what Apple did with the M one moving 0:16:04.040 --> 0:16:07.000 to ARM. We're bringing ARM to the Windows ECO system. 0:16:07.040 --> 0:16:11.160 So they they're winning in the PC space. Automotive already won. 0:16:11.360 --> 0:16:14.000 It's an ARM. I will argue that in Vidia without 0:16:14.080 --> 0:16:19.120 acquiring ARM, they announced CPU ARM for the data center, 0:16:19.520 --> 0:16:23.800 Amazon with ARM on Graviton, Google working on ARM. So 0:16:23.840 --> 0:16:26.160 I would argue that if you step back and you 0:16:26.280 --> 0:16:30.400 look ARM already one and the one, because they're independent, 0:16:30.440 --> 0:16:32.840 it's not like you need one company to buy ARM 0:16:32.920 --> 0:16:36.400 to invest in ARM for them to win. Wom participate 0:16:36.440 --> 0:16:39.360 in a consortium to buy ARM to keep it usual, 0:16:39.920 --> 0:16:42.880 we said before, I reiterated, and any of those options 0:16:42.960 --> 0:16:45.640 become available. I think Qualcom is going to be right 0:16:45.680 --> 0:16:48.479 there and it's gonna it's gonna be interested in participating. 0:16:48.960 --> 0:16:52.840 And many other companies that across different UH sectors, across 0:16:52.840 --> 0:16:57.240 the automotive sector, the cloud companies had indicated similar concerns. 0:16:57.360 --> 0:17:00.440 We all we all want an independent arm I know 0:17:00.520 --> 0:17:02.400 that you've traveled to China a lot. Qualcom has a 0:17:02.400 --> 0:17:06.439 big business um in China. Are you being impacted at 0:17:06.440 --> 0:17:10.320 all by the US China trade tensions that the ratcheting 0:17:10.400 --> 0:17:14.160 up of rhetoric between the two governments, Not at all? 0:17:14.880 --> 0:17:18.000 I you know, I said that many times before, and 0:17:18.080 --> 0:17:20.200 our rate to rate. I think our business with China 0:17:20.760 --> 0:17:24.600 is expending. We have growing and vibrant business with China. 0:17:24.640 --> 0:17:27.399 But it's important to understand the fundamentals of that. We 0:17:27.520 --> 0:17:33.040 provide technology to a lot of the China companies. They 0:17:33.040 --> 0:17:36.959 are growing in within technology within their domestic market as 0:17:37.000 --> 0:17:39.760 well as their global ambitions. We're working with companies like 0:17:39.840 --> 0:17:42.720 the g I for drones. We're working for companies on 0:17:42.800 --> 0:17:45.840 network and an ILT that continue to expand. At the 0:17:45.960 --> 0:17:50.000 end of the day, I still believe that strong business 0:17:50.160 --> 0:17:53.800 cooperation between the private sector in the United States and 0:17:53.920 --> 0:17:56.400 China it is probably going to continue to be a 0:17:56.480 --> 0:18:00.280 stabilizing force and the relations between the two countries. And 0:18:00.480 --> 0:18:04.439 I feel that, uh, it's the right ward and the 0:18:04.560 --> 0:18:10.480 conversation should be strategic coupling off the two economies and 0:18:10.720 --> 0:18:14.119 especially what we do. It's great for United States to 0:18:14.160 --> 0:18:18.399 have leadership in semi and in across the industry that 0:18:18.480 --> 0:18:20.960 we operate in. And I think that's good for United 0:18:20.960 --> 0:18:23.840 States and it's good for China. So no concern that 0:18:24.160 --> 0:18:27.280 longer term as an American company, Qualcom could become a 0:18:27.320 --> 0:18:31.760 target for retaliation in a in a US China trade war. Look, 0:18:31.840 --> 0:18:35.679 we can't. We can't really predict you know, the outcomes. 0:18:35.760 --> 0:18:37.960 You know you can you can take the glasses have food, 0:18:37.960 --> 0:18:41.520 the glasses half empty. I always take the glasses have full. 0:18:42.200 --> 0:18:45.560 I think we add so much value to the Chinese companies. 0:18:45.960 --> 0:18:49.720 The number of Chinese companies they're now depending on Qualcom 0:18:49.720 --> 0:18:53.119 technology is bigger today than it was yesterday, and it 0:18:53.200 --> 0:18:55.680 was going to be much bigger tomorrow. And I think 0:18:55.760 --> 0:19:03.080 that provides stability to our presence and business in China. 0:19:03.600 --> 0:19:07.080 You're listening to my conversation with Christiano Amant, Qualcom CEO. 0:19:07.720 --> 0:19:11.120 Up next, how Aman is leading the semiconductor industry into 0:19:11.240 --> 0:19:15.520 the future, a r VR five, gene glasses, the metaverse, 0:19:16.000 --> 0:19:19.520 plus how do muscle cars and martial arts play into 0:19:19.720 --> 0:19:23.160 his story. I'm Emily Chang and this is Bloomberg Studio 0:19:23.200 --> 0:19:37.320 one point out stay with us. I'm told that you're 0:19:37.359 --> 0:19:40.360 kind of like a networker on steroids. I think it's 0:19:40.359 --> 0:19:43.600 a kid's a compliment. But how would you describe yourself 0:19:43.640 --> 0:19:45.920 or what do you think of that? Well, it's uh, well, 0:19:45.960 --> 0:19:49.000 I think that as a compliment. I think it's um 0:19:49.040 --> 0:19:53.600 maybe more than me um. I will say, uh. Qualcom 0:19:53.600 --> 0:19:57.960 has an incredible role in the eco system, uh, within 0:19:58.000 --> 0:20:01.040 the wordless industry. I think company needs recognized that we 0:20:01.119 --> 0:20:04.600 can we can put this together. I think looking at 0:20:04.600 --> 0:20:07.960 the fact that we provide technology across all companies, whether 0:20:08.000 --> 0:20:12.560 you're infrastructure company, whether their device company, where our application developer. Uh, 0:20:12.600 --> 0:20:15.719 that's a common thing and that creates an ecosystem all 0:20:15.800 --> 0:20:17.920 companies over shared goal. But how do you, I mean, 0:20:17.920 --> 0:20:20.120 are you like constantly picking up the phone to Tim 0:20:20.200 --> 0:20:22.960 Cook or Andy Jase or sat Adela or some Look. 0:20:23.040 --> 0:20:26.680 I have built a lot of relationship over the years, 0:20:26.680 --> 0:20:29.879 and I I will say one of my assets is 0:20:30.440 --> 0:20:33.720 I think an incredible network because I was able to 0:20:34.480 --> 0:20:36.679 reach out to a number of companies and create a 0:20:36.720 --> 0:20:39.399 win win partnership. So I won't deny it. I have 0:20:40.320 --> 0:20:46.000 I had built incredibly strong relationship. I think relationships is 0:20:46.040 --> 0:20:49.840 always based on if they're successful, is based on trust 0:20:50.480 --> 0:20:53.440 and based on ability to have you know, win win 0:20:53.520 --> 0:20:57.960 partnerships and UH. And that's reflected also beyond five G. 0:20:58.560 --> 0:21:01.399 You've been saying quite nice things about Intel's pacl Singer 0:21:01.840 --> 0:21:04.120 when you know, obviously with their foundry business, they could 0:21:04.119 --> 0:21:09.480 look like a competitor. Is that genuine sentiment? Absolutely? Look 0:21:09.680 --> 0:21:11.240 the way. Here's how I think about it. And I 0:21:11.240 --> 0:21:15.280 think Pat and I UH, I think we're both part 0:21:15.359 --> 0:21:19.600 of the class of the one c H. I think 0:21:19.640 --> 0:21:25.080 Qualcom in Intel are two incredible UH technology companies in 0:21:25.119 --> 0:21:28.040 America and UH and I think we have been at 0:21:28.160 --> 0:21:31.040 odds with each other in the past, and I think 0:21:31.080 --> 0:21:33.639 Pat and I had an opportunity to redefine this relationship. 0:21:34.040 --> 0:21:38.000 Everything is conversion. I think mobile technology is everywhere. So 0:21:38.000 --> 0:21:40.680 when you look at that, it's really about coopetition. It's 0:21:40.720 --> 0:21:44.280 no different than a relationship with Samsung, relationship with Sandsung. 0:21:44.400 --> 0:21:49.720 It's UH. If anything is an incredible, great relationship. It's complex. Uh, 0:21:49.760 --> 0:21:52.919 we are a supplier, we're a customer, we're a competitor 0:21:52.960 --> 0:21:55.879 all at once. There's nothing more important right now for 0:21:55.920 --> 0:21:59.679 this in my conductor industry to have a resilient Uh 0:21:59.760 --> 0:22:02.399 say my conductor supply chain its clock. I'm gonna be 0:22:02.400 --> 0:22:04.280 in the metaverse or your chips going to be in 0:22:04.280 --> 0:22:09.240 the metaverse. We have start working early with augmented reality 0:22:09.280 --> 0:22:12.359 and virtual reality. You know, we now those are becoming 0:22:12.359 --> 0:22:15.880 a meaningful business. We have an incredible relationship with Facebook 0:22:15.920 --> 0:22:18.399 on auclus I think that's what VR will be working 0:22:18.680 --> 0:22:22.240 with companies like Microsoft on augmented reality. I think mixed 0:22:22.240 --> 0:22:25.119 reality is going to be a reality, uh for us 0:22:25.400 --> 0:22:29.879 pun intended. I feel that the next phone, it's going 0:22:29.920 --> 0:22:32.560 to be immersive glasses, and we're gonna have glasses that 0:22:32.600 --> 0:22:35.440 we're gonna wear, and it's gonna be pair with our phone. 0:22:35.440 --> 0:22:38.199 And eventually we're just gonna have glasses. Our phones are 0:22:38.200 --> 0:22:41.520 going to be glasses, augmented reality glasses. Think about this, 0:22:41.560 --> 0:22:44.199 You're gonna get glasses that look like this. You'll be 0:22:44.200 --> 0:22:47.120 able to have five G modem and computation in your glasses. 0:22:47.160 --> 0:22:49.760 You're gonna bring their own demanding computing of the cloud, 0:22:50.200 --> 0:22:52.399 and you'll be able to with those glasses, we'll be 0:22:52.440 --> 0:22:56.600 able to look at everyone, look at everything, and if 0:22:56.600 --> 0:22:58.560 you look at somebody, and then we'll say, I'm going 0:22:58.600 --> 0:23:01.359 to re facehip. Recogn should go to the cloud, check 0:23:01.400 --> 0:23:04.800 on Instagram, linked in everything, get all information you need 0:23:05.200 --> 0:23:08.840 UH in real time, as well as objects and things 0:23:08.840 --> 0:23:11.359 that you want to research upon. That's no longer a 0:23:11.400 --> 0:23:14.639 technology issue. It's just a matter of having the ecosystem 0:23:14.680 --> 0:23:18.480 to mature. I think there's an incredible opportunity, UH, to 0:23:18.680 --> 0:23:24.760 change healthcare, to change education productivity as we bring full immersive, 0:23:24.800 --> 0:23:28.360 augmented reality and two glasses. You live in San Diego, 0:23:28.600 --> 0:23:31.560 work qualcom is based. I know you're a dad um. 0:23:31.720 --> 0:23:34.480