Visitors tour the booth of the US chip company Qualcomm at the 2023 China International Fair for Trade in Services (CIFTIS), which runs from September 2 to 6 in Beijing. This year is the fourth consecutive year that the US tech company is participating in the fair. Photo: Li Hao/GT

 
US chip giant Qualcomm on Thursday denied rumors that the company’s Shanghai branch is preparing large-scale layoffs and that it may withdraw from the Chinese market, but it said there may be some layoffs due to “uncertainties” in the demand situation.  

Qualcomm said that given the uncertainties, the company will make relevant adjustments but that it will continue to invest in opportunities and diversified business, according to a report by yicai.com on Thursday. 

Qualcomm noted that the adjustment plan is still under discussion and may include layoffs, but rumors about a large-scale layoff, office closure and withdrawal from Shanghai were incorrect, said the report.  

Chinese media outlet jiemian.com reported on Thursday that news about massive layoffs by Qualcomm in Shanghai has been going viral since the beginning of this week on social media platforms. 

US sanctions and restrictions on chip sales could pose a risk for Qualcomm and other global chipmakers’ business in China. 

Also, with the recent release of Huawei’s Mate 60 Pro series, market observers anticipate a potential restructuring of the global industrial chain, which may bring more market challenges for US chip giants like Qualcomm, particularly if the US persists with the sanctions.

Qualcomm’s financial report for the third quarter of 2023 showed that the company’s revenue stood at $8.44 billion, down by 23 percent year-on-year, while net profit hit $1.8 billion, down 52 percent year-on-year.  

Affected by sluggish global demand for smartphones, Qualcomm’s sales of smartphone chips saw a 25 percent decrease, the financial report showed. 

As to whether the US can subvert the semiconductor industry ecosystem on its own, John Neuffer, president of the US Semiconductor Industry Association, said that no country can reverse the chip supply chain. "China is an important part of our supply chain and also a very large customer base for us," Neuffer said.

The semiconductor industry needs China, Yuyuan Tantian, a social media user affiliated with China Media Group, reported on Thursday.