Messaging firm Line launches a dedicated crypto fund

Messaging company Line is continuing to burrow deep into the crypto space after it announced the launch of a $10 million investment fund.

The fund will be operated by Line’s Korea-based blockchain subsidiary Unblock Corporation, which is tasked with research, education and other blockchain-related services. The fund will be called Unblock Ventures and it’ll initially have a capital pool of $10 million but Line said that is likely to increase over time.

The company said the fund will be focused on early-stage startup investments, but it didn’t provide further details.

Line is listed in Tokyo and on the NYSE. This fund makes it one of the first publicly traded companies to create a dedicated crypto investment vehicle. The objective, it said, is “to boost the development and adoption of cryptocurrencies and blockchain technology.”

Line claims nearly 200 million users of its messaging app, which is particularly popular in Japan, Taiwan, Thailand and Indonesia. The company also offers a range of connected services that include payment, social games, ride-hailing, food delivery and more.

This marks Line’s second major crypto move this year following the launch of its BitBox exchange last month. It isn’t available in the U.S. or Japan right now but Line envisages closes ties with its messaging service and other features further down the line.

These moves into crypto come despite some serious downturn in the valuation of the space this year following record highs in January which saw the value of one Bitcoin touch nearly $20,000 and Ethereum, among others, surged. In the months since then, however, many cryptocurrencies have seen their valuations decline. This week, Ethereum dropped below $300 in what is its first major price crisis. Bitcoin has, for many years, risen and fallen although January’s valuations took the extremes to a new level.

Note: The author owns a small amount of cryptocurrency. Enough to gain an understanding, not enough to change a life.

Uber is on a hiring spree in Singapore despite ‘exiting’ Southeast Asia

Uber agreed to sell its Southeast Asia business in March, but it isn’t leaving the region. In fact, the U.S. firm is literally doubling down with plans to more than double its staff in Singapore.

That’s right. Uber is currently in the midst of a major recruitment drive that will see Singapore, the first city it expanded to in Asia, remain its headquarters for the Asia Pacific region despite its local exit. Unfortunately for customers who miss having a strong alternative to Grab, Uber won’t be bringing its ride-hailing app back in Singapore or anywhere else in Southeast Asia.

Uber’s own job portal lists 19 open roles for Singapore, but the company has contacted headhunting and recruitment firms to help fill as many as 75 vacancies, three sources with knowledge of Uber’s hiring plans told TechCrunch.

The new hires will take Uber’s headcount in Singapore to well over 100 employees, the sources claimed.

Ironically, of course, Uber let most of its staff in Southeast Asia leave when it stopped serving customers across its eight markets in Southeast Asia in April — although it was forced to extend into May in Singapore. As part of its exit deal, Grab got first dibs on 500 or so Uber Southeast Asia staff but that strategy didn’t pan out as planned, as TechCrunch previously reported. Indeed, a recent report suggested that fewer than 10 percent of ‘Uberites’ moved over to become ‘Grabbers’.

And yet, here we are, Uber is aggressively hiring in Singapore — but why?

The original plan following the Grab deal was for Uber to relocate its regional headquarters to either Japan or Hong Kong, two sources told TechCrunch, but in recent months that strategy has shifted. Just weeks ago, the remaining Singapore Uber collective — which consists of managers and executives — secured budget to staff up and find a larger office in the name of creating a support team for its remaining Asia Pacific markets.

The plan is for the Singapore-based employees to provide services such as HR, accounting, admin, marketing and PR across Uber APAC, which includes Hong Kong, Taiwan, Japan, Korea, Australia and India — although the latter has more sovereignty with its own president who reports into the U.S..

An Uber spokesperson acknowledged that the company is in the process of hiring in Singapore, but declined to provide further details.

Sources with knowledge of discussions inside the company told TechCrunch that the decision to stay in Singapore is down to a number of reasons.

Hong Kong, which had been a frontrunner to become Uber’s new APAC HQ, was ruled out because Uber’s legal status in the country is unclear — a number of drivers have been prosecuted — while Japan and Australia were deemed to be too remote to be regional hubs. That left Singapore, as an established city for business with an existing Uber staff, as the remaining option.

Sources also told TechCrunch, however, that a degree of self-service was involved. Those executives and managers who managed to remove themselves from the “shame” of being shipped to Grab dug their heels in to avoid relocating their lives and families elsewhere, two sources claimed.

Talking to TechCrunch, some former Uber staff questioned whether the remaining Asian markets require remote services from Singapore, which is one of the world’s most expensive cities. Together the countries are hardly huge revenue generators for Uber and could be handled locally or other global cities. There’s certainly an argument that the continued investment in Singapore is at odds with the widely-held theory that Uber left Southeast Asia, a money-losing market, to clean up its balance sheet ahead of a much-anticipated IPO next year.

One former Uber employee who did transition to Grab noticed that the U.S. firm is now hiring for their previous role. That situation is made worse by a ban that prevented Uber’s Southeast Asia employees from applying to transfer to other parts of the firm’s global business. That’s despite many being allowed to do so in the case of previous Uber exit deals in China and Russia.

The result is that Uber is hiring in Singapore, a market where it no longer offers its service and gave up most of its staff to its rival. Anything can happen in the ride-sharing space!

Y Combinator is launching a startup program in China

U.S. accelerator Y Combinator is expanding to China after it announced the hiring of former Microsoft and Baidu Qi Lu who will develop a standalone startup program that runs on Chinese soil.

Shanghai-born Lu spent 11 years with Yahoo and eight years with Microsoft before a short spell with Baidu, where he was COO and head of the firm’s AI research division. Now he becomes founding CEO of YC China while he’s also stepping into the role of Head of YC Research. YC will also expand its research team with an office in Seattle, where Lu has plenty of links.

There’s no immediate timeframe for when YC will launch its China program, which represents its first global expansion, but YC President Sam Altman told TechCrunch in an interview that the program will be based in Beijing once it is up and running. Altman said Lu will use his network and YC’s growing presence in China — it ran its first ‘Startup School’ event in Beijing earlier this year — to recruit prospects who will be put into the upcoming winter program in the U.S..

Following that, YC will work to launch the China-based program as soon as possible. It appears that the details are still being sketched out, although Altman did confirm it will run independently but may lean on local partners for help. The YC President he envisages batch programming in the U.S. and China overlapping to a point with visitors, shared mentors and potentially other interaction between the two.

China’s startup scene has grown massively in recent years, numerous reports peg it close to that of the U.S., so it makes sense that YC, as an ‘ecosystem builder,’ wants to in. But Altman believes that the benefits extend beyond YC and will strengthen its network of founders, which spans more than 1,700 startups.

“The number one asset YC has is a very special founder community,” he told TechCrunch. “The opportunity to include a lot more Chinese founders seems super valuable to everyone. Over the next decade, a significant portion of the tech companies started will be from the U.S. or China [so operating a] network across both is a huge deal.”

Altman said he’s also banking on Lu being the man to make YC China happen. He revealed that he’s spent a decade trying to hire Lu, who he described as “one of the most impressive technologists I know.”

Y Combinator President Sam Altman has often spoken of his desire to get into the Chinese market

Entering China as a foreign entity is never easy, and in the venture world it is particularly tricky because China already has an advanced ecosystem of firms with their own networks for founders, particularly in the early-stage space. But Altman is confident that YC’s global reach and roster of founders and mentors appeals to startups in China.

YC has been working to add Chinese startups to its U.S.-based programs for some time. Altman has long been keen on an expansion to China, as he discussed at our Disrupt event last year, and partner Eric Migicovsky — who co-founder Pebble — has been busy developing networks and arranging events like the Beijing one to raise its profile.

That’s seen some progress with more teams from China — and other parts of the world — taking part in YC batches, which have never been more diverse. But YC is still missing out on global talent.

According to its own data, fewer than 10 Chinese companies have passed through its corridors but that list looks like it is missing some names so the number may be higher. Clearly, though, admission are skewed towards the U.S. — the question is whether Qi Lu and creation of YC China can significantly alter that.

Chinese Tesla rival Nio files to raise $1.8 billion in US IPO

Tesla may be looking to go private, but Chinese rival Nio is going the other way after it filed to raise $1.8 billion in an IPO on the New York Stock Exchange.

Nio was started in 2014, initially as NextCar, by Bin Li, an entrepreneur who founded online automotive services platform Bitauto. The company is backed by Chinese internet giants Baidu and Tencent among others, and it has developed two vehicles so far: the EP9 supercar and ES8.

The former is really a concept/racer car — it broke the electric vehicle speed record last year — but the ES8, pictured above, is a car designed for the masses which is priced at 448,000 RMB, or around $65,000.

Nio opened sales for the ES8 last year but it only began shipping in June. Thus, to date, it has fulfilled just 481 orders, although it claims that there are 17,000 customers who put down reservations waiting in the wings.

That means that, essentially, it is pre-revenue at this point.

The company reported revenue of $6.9 million as of the end of June — so one month of deliveries — with a total loss of $502 million for 2018 to date. Last year, Nio lost $759 million in 2017, that included no revenue and nearly $400 million spent on R&D.

Nio may be in the same space as Tesla, but its approach differs from the U.S. firm. The company operates ‘clubhouses’ where it sells to new customers and allows existing owners to come to spend time, while it also goes direct to consumer with mobile-based sales. (Not, unlike, say an early Xiaomi model.)

Nio’s pricing is more focused on mid-market and, without a charger network like Tesla (most Chinese households would struggle to charge at home), it has developed its own unique way to handle battery charging. Its vehicles support battery swapping at dedicated stations while it operates a range of roaming charging trucks can  reach users who are low on juice.

Those on-demand charging services come as part of a subscription-based package which will add further revenue beyond car sales. Further down the line, the company said its vehicles will be compatible with the national EV charging network China is developing so that’ll help on the charging front, too.

Like China’s infrastructure play, Nio itself is very much a work in progress.

Indeed, case in point, it doesn’t yet operate its own factory.

Right now, state-owned JAC Motors handles product but Nio has pledged to invest $650 million to construct its own manufacturing plant in Shanghai. Nio’s current order backlog will take six to nine months to process, according to the filing, but its own factory could mean orders are dispatched to customers within 28 days of purchase.

The interior of the NIO ES8

The company’s focus is China, but Nio has global roots. Shanghai is its headquarters and home to nearly 2,500 staff, but it also has teams in Munich (design), San Jose (software and self-driving) and London and Oxford in the UK, which handle vehicle concepts.

Its executive team is predominantly Chinese but one familiar name is Padmasree Warrior who is the head of Nio’s U.S. business. The former Motorola CTO joined the company in 2015 after calling time on Cisco, where she spent seven years and had been chief technology and strategy officer.

Despite an international setup, there’s no word in the filing on whether Nio has a timeframe for selling vehicles outside of China. For now, the company cites analyst data claiming that “China is a clear leader in the global EV market” with sales growing from 21,800 in 2013 to 740,900 units last year. That’s despite the Chinese government cutting back on some of its generous subsidies aimed at encouraging early ownership of EVs and eco-friendly hybrid cars.

Singapore’s Openspace Ventures closes new $135M fund for Southeast Asia

It seems like everyone is out there raising new funds in Southeast Asia. Weeks after we reported Golden Gate Ventures hit a first close on its third fund aimed at $100 million, so Openspace Venturesthe Singapore-based firm formerly known as NSI — has announced a final close of $135 million for its second fund.

Founded in 2014 by entrepreneur Hian Goh and finance exec Shane Chesson, Openspace is best known for being an early backer of Indonesian ride-hailing unicorn Go-Jek. A selection of its other investments includes fintech startup FinAccel, e-commerce player Love Bonito, restaurant booking service Chope, health-focused insurance brokerage CXA Group, and bread maker Rotimatic.

Openspace specializes in Series A with a typical check size of $3 million to $5 million, and capital for follow-on deals. Goh told TechCrunch around the time of the first close that the plan is to expand the focus on startups operating marketplaces and/or the e-commerce space to cover emerging verticals such as fintech, health tech and education.

Chesson, his partner, said that in areas like healthcare, progress from startups has been “remarkable” while he sees “great opportunities” to develop new kinds of consumer-centric brands in e-commerce, both B2C and B2B.

Beyond vertical expansion, the firm may also seek opportunities in new geographies — it invested alongside Go-Jek in Bangladesh-based on-demand service Pathao, for example. It also plans to utilize local teams in Thailand, Indonesia and Vietnam and perhaps expand its network to more markets, too.

The target for the capital is Southeast Asia, a region of more than 650 million consumers where rising internet access is creating new opportunities for tech startups and internet-based businesses.

A report co-authored by Google last year forecast the region’s internet economy reaching $200 billion per year by 2025, up from $31 million in 2015. Already, Southeast Asia has more internet users than the U.S. population, and the total value of its digital economy was said to reach $50 million in 2017.

Between 2016 and 2017, investors pumped over $12 billion into Southeast Asia-based startups. It’s an impressive stat, but most of the capital was captured by the largest businesses and that’s why more seed and early-stage funds are needed — and are arriving — in the region.

The Openspace Ventures team

At investor level, there certainly seems to be a growing appetite among global LPs, the investors who fund the funds.

Openspace, for example, was originally targeting a $125 million raise, but the firm said it saw significant interest and so raised the additional figure to “embed deeper regional and operating capabilities” into its team.

Singapore sovereign fund Temasek and U.S. PE firm StepStone Group are among the named LPs. Openspace said others include pension funds, university endowments, insurance companies and family offices across the U.S., Europe, Japan, China and Australia.

“For most of these LPs, Openspace is their first and only investment in this region. For some, they have returned and increased their commitment since fund one,” Chesson told TechCrunch via email. “It has taken some time for LPs of this caliber to get comfortable with the region, but we are pleased that we now have the track record at the fund and the interest in the region to bring them on board.”

“This is a big change from a few years back and is a testament to all the entrepreneurs and ecosystem partners who have developed this market so rapidly. There is still much work to be done though in fulfilling the promise, realizing gains, filling in gaps in the regional capability set and we look forward to being part of this,” he added.

This second pot has already been open and, combined with a $90 million debut fund, the firm has backed 19 startups to date. That portfolio, it said, has raised over $2.6 billion in follow-on capital which, even without $2 billion from Go-Jek, is pretty impressive. Indeed, Openspace says its inaugural fund is ranked the third best performing VC fund in the 2003-2015 bracket, according to investment tracking service Preqin.

China’s Didi beefs up its newly-independent car services business with an acquisition

A week after spinning out its driver services business and giving it $1 billion in investment capital, Didi Chuxing has added to it through an acquisition.

Xiaoju Automobile Solutions (XAS), which the Didi spinout is called, announced today it has bought Hiservice, a three-year-old company that provides after-service care for car owners using a digital platform.

The deal was undisclosed, but XAS said that Hiservice will be combined with its maintenance and repair division to form a new unit that’s focused on car-owner services such as maintenance, parts and components. That’ll be called Xiaoju Auto Care (小桔养车) for those of you who are keeping up with the names of these Didi subsidiaries.

That auto care business will be jointly run by Yinbo Yi, who had run Didi’s auto care business, and Hiservice founder Cheng Qian, Didi confirmed. The new business claims 28 physical maintenance centers across seven cities in Asia.

Didi’s move to create XAS, which removes an asset-heavy business from the core Didi books, is seen by many as a sign that the company plans to go public soon. Unsurprisingly, Didi isn’t commenting on that at this point. The company was last valued at $56 billion when it raised a $4 billion round late last year — it has since added a $500 million strategic investment from travel company Booking Holdings.

While it is organizing its China-based business, Didi has also spent this year expanding into new markets. It has launched in Mexico, Australia and Taiwan while it acquired Uber rival 99 in Brazil. It is also edging close to launching a taxi-booking service in Japan via a joint venture with SoftBank.

India’s budget hotel network OYO moves into wedding banquet services

OYO Rooms, the India-based budget hotel network that’s backed by SoftBank’s Vision fund, has prioritized expansion into China this year but that’s not all it’s up to. Back home in India, it just moved into the event hosting space through the acquisition of a wedding banquet company.

Today, OYO said it has acquired Weddingz.in, a three-year-old company that claims to be India’s largest wedding planner with 4,000 venues across 15 cities. The company had raised over $1 million from investors, and it says that it handles 1,500 weddings per quarter.

The deal is undisclosed and it is OYO’s third acquisition to date, all of which have come this year. Previously it snapped up a boutique apartment operator and then IOT startup AblePlus, but this transaction marks its first move outside of its core hotels and homes segment. The company said it is making the move because wedding banquets are “a fragmented, low yield, broken customer service business” that OYO believes matches with its experience of digitizing hotels and real estate.

“At OYO, our experience ranges from end-to-end management of homes, villas, small asset to hotels with 100+ rooms while running successful businesses for our asset partners and all these facets will be of utmost importance while operating in the wedding industry that in the dire need of fundamental changes and improvements,” OYO CSO Maninder Gulati said in a statement.

OYO hinted in its announcement today that it has other real estate projects in mind to expand further beyond hotels. That core focus is its affordable hotel network that it says spans 5,500 exclusive hotels in over 160 cities across India, China, Malaysia and Nepal.

OYO announced its move into China this summer and in two months it claims to have reached 1,000 chains across 28 locations in the country with a focus on serving middle-income customers.

The company has been linked with an investment from internet giant Tencent to push on in China, but so far nothing has been confirmed. OYO does count NASDAQ-listed China Lodging, which was formerly known as Huazhu Hotels and is valued at $6.8 billion, as a strategic partner on the ground there though. China Lodging invested $10 million last year as a follow-on to OYO’s $250 million Series D, which was led by SoftBank’s Vision Fund.

Three Indonesian tech unicorns unite to back digital insurance startup

It’s almost unheard of to see three unicorns join forces to fund a startup, but that’s exactly what has happened in Indonesia.

Ride-hailing company Go-Jek, e-commerce firm Tokopedia and travel booking startup Traveloka — each of which is valued in the billions of U.S. dollars — have come together to provide a Series A funding round for PasarPolis, a digital insurance startup in Indonesia aiming to tap Southeast Asia’s growing internet economy.

PasarPolis started out as an insurance comparison site but today it offers micro- and modular-insurance online. Go-Jek, Tokopedia and Traveloka are three of its major clients through which it offers ‘click box’ policies that are bundled with ride-hailing trips, e-commerce sales and travel deals.

The round itself is undisclosed but TechCrunch understands that it is in range of $5-8 million, as was earlier reported by Deal Street Asia.

PasarPolis founder and CEO Cleosent Randing told TechCrunch in an interview that the deal was strategic and aimed at developing new products with the three companies, which he estimates provide “access to 100 million insurable hits per month.” He said that the startup could be picky because it is already cash flow positive.

“We were very very selective with this round, it’s something we are keeping quite low profile,” he explained. “It’s more of how we can be the provider of choice for the largest digital companies in Indonesia… we feel it’s a strategic investment and collaboration to advance micro insurance via the internet.

“Do they believe in the vision and can they help make the vision a reality but giving customers much cheaper, more modular insurance which is more relevant in today’s digital economy?” he added.

[Left to right:] Tokopedia COO Melissa Siska Juminto, Go-Jek chief human resources officer Monica Oudang, PasarPolis founder & CEO Cleosent Randing, Minister of Communications and Informatics Rudiantara, and Traveloka SVP of business development Caesar Indra

Beyond obvious consumer-focused products, PasarPolis has developed programs such as life insurance for Go-Jek drivers, and health care initiatives for SMEs that sell product on Tokopedia. In the travel space, he pointed out that growth in insurance revenue for companies like Expedia is outstripping ticket sale growth which bodes well for Traveloka.

PasarPolis is currently waiting on the result of an application for an insurance license which will give it new options for products beyond its current setup of working with insurers on underwriting. That’ll take some time, however, and right now the focus is on developing new insurance products, cementing its position in the market and also expanding into new markets in Southeast Asia — which now has more internet users than the entire population of the U.S., according to a report co-authored by Google.

Its work with Go-Jek will take it into markets like Vietnam and Thailand — where Go-Jek is expanding its ride-hailing business — but Randing said he is also in talks with other companies and insurance providers to offer more modular options for consumers. That could take the form of usage-based car insurance, or cover for public transport-based delays, he explained.

“Our goal is to make insurance less expensive than half of cup of a Starbucks coffee,” Randing said. Adding that the company may look for new funding in early 2019 as it grows its regional footprint.

Interestingly, PasarPolis has already gone overseas by tapping India for talent — which is something Go-Jek and others have also done. Randing said the company has 15-20 engineers in Bangalore, while the core team, partner support and tech integration staff are housed in Indonesia.

Offering a white-labeled lending service in emerging markets, Mines raises $13 million

Emerging markets credit startup Mines.io has closed a $13 million Series A round led by The Rise Fund, the global impact fund formed by private equity giant TPG, and 10 others, including Velocity Capital.

Mines provides business to consumer (B2C) “credit-as-a-service” products to large firms.

“We’re a technology company that facilitates local institutions — banks, mobile operators, retailers — to offer credit to their customers,” Mines CEO and co-founder Ekechi Nwokah told TechCrunch.

Most of Mines’ partnerships entail white-label lending products offered on mobile phones, including non-smart USSD devices.

With offices in San Mateo and Lagos, Mines uses big-data (extracted primarily from mobile users) and proprietary risk algorithms “to enable lending decisions,” Nwokah explained.

“We combine a strong AI technology with full…deployment services — disbursement…collections, payments, loan management, and regulatory — wrap it up in a box, give it to our partners and then help them run it,” he said.

Mines’ typical client is a company “that has a large customer base and wants to avail credit to that customer base,” according to Nwokah. The startup generates revenue from fees and revenue share with partners.

Mines started operations in Nigeria and counts payment processor Interswitch and mobile operator Airtel as current partners. In addition to talent acquisition, the startup plans to use the Series A to expand its credit-as-a-service products into new markets in South America and Southeast Asia “in the next few months,” according to its CEO.

Mines sees itself as a “hardcore technology company based in Silicon Valley with a global view,” according to Nwokah. “At the same time, we’re very African,” he said.

The startup’s leadership team is led by three Nigerians — Nwokah, Chief Scientist Kunle Olukotun and MD Adia Sowho. The company came together after Olukotun (then and still a Stanford professor) and Nwokah (a then-AWS big data specialist) met in Palo Alto in 2014.

Looking through the lens of their home country Nigeria, the two identified two problems in emerging markets: low access to credit across large swaths of the population and insufficient tools for big institutions to put together viable consumer lending programs.

Due to a number of structural factors in these markets, such as low regulatory support, lack of credit data and tech support, “there’s no incentive for many banks and institutions to take risk on a retail lending business,” according to Nwokah.

Nwokah sees Mines’ end user market as “the more than 3 billion adults globally without access to credit,” and its direct client market as big “banks, retailers and mobile operators…who want to power digital credit tailored to these markets.”

Mines views itself as different from the U.S.’s controversial payday lenders by serving different consumer needs. “If you live in a country where your salary is not guaranteed every month, where you don’t have a credit card…where you have to pay upfront cash for almost everything you do, you need cash,” he said

The most common loan profile for one of Mines’ partners is $30 at 15 percent flat for a couple of weeks.

Nwokah wouldn’t name specific countries for the startup’s pending South America and Southeast Asia expansion, but believes “this technology is scalable across geographies.”

As part of the Series A, Yemi Lalude from TPG Growth (founder of The Rise Fund) will join Mines’ board of directors.

On a call with TechCrunch, Lalude named the company’s ability to “drive financial inclusion within a matter of seconds from mobiles devices,” their “local execution on the ground” and model of “partnering with many large organizations with their own balance sheets” as reasons for the investment commitment.

With Mines’ pending Asia and South America move they join Nigerian tech companies MallforAfrica.com and data analytics firm Terragon Group, who have expanded or stated plans to expand internationally this year.

 

Qualcomm settles antitrust case in Taiwan

Qualcomm may have lost its long-winded deal to buy NXP on account of China and it continues to battle lawsuits worldwide, but the company does have a dose of good news out of Asia today after it settled an antitrust investigation in Taiwan.

The U.S. chip firm was hit with a record $773 million fine last October when it was accused of monopolistic practices, but Qualcomm and the Taiwan Fair Trade Commission (TFTC) said today they have reached an agreement that sees the charges dropped in exchange for the firm investing $700 million in the country.

The TFTC will keep hold of the NTD 2.73 billion ($93 million) portion of fines that Qualcomm paid this summer in exchange for a promise that Qualcomm will make the $700 million investment over the next five years, according to Bloomberg.

Qualcomm didn’t explicitly mention that figure in its statement on the agreement, but it did outline its proposed “commercial initiatives:”

Qualcomm will drive certain commercial initiatives in Taiwan over the next five years for the benefit of the mobile and semiconductor ecosystem, SMEs and consumers, including 5G collaborations, new market expansion, start-up and university collaborations and the development of a Taiwanese center for operations and manufacturing engineering. Qualcomm will work with the TFTC and sister agencies within the Taiwanese government to implement these initiatives and investments.

Crucially, the deal will also allow Qualcomm to continue with its current pricing strategy in Taiwan. That pricing policy has triggered a wave of lawsuits worldwide which has left Qualcomm reeling — indeed, its falling share price made it a target for an ultimately unsuccessful takeover attempt from Broadcom.

The most notable pending legal spat is with Apple.

In January 2017, Apple sued Qualcomm for $1 billion claiming that it is charged a hefty price for royalties on technologies that Apple said the chipmaker should not be associated with. It also alleged that Qualcomm had been withholding payments it was owed.

The Apple suit came quickly after an antitrust lawsuit filed against Qualcomm by the U.S. Federal Trade Commission for using its position as the leading supplier in the handset market to charge fees on technologies that amount to industry standards.

Earlier this year, Qualcomm was hit with a $1.23 billion fine from the EU for abusing its market position between 2011 and 2016, relating to its relationship with Apple. That figure works out to 4.9 percent of Qualcomm’s revenues in 2017.

Qualcomm has also sued Apple, alleging that the iPhone X infringes on Palm patents which are now owned by the chipmaker. But the hostility seems likely to hurt Qualcomm’s bottom line since Apple has reportedly been building iPhone prototypes that eradicate usage of Qualcomm technologies altogether.