CDF Dialogue focuses on topics such as the global political and economic situation, business values, international cooperation, and human development, with the purpose of "Dialogue with the world, seek common development", aiming to promote rational and equal communication between China and the world.

Fang: Hello, Mr. Amon. Thank you for joining us today.

First of all, let me congratulate on your succession of Qualcomm’s CEO last July. As you know, Qualcomm is one of the world’s leading players in the global digital transformation. As Qualcomm’s CEO, how do you perceive the worldwide digital technology revolution and Qualcomm’s role in this process? Thank you.

Amon: Thank you very much, Secretary General Fang. It’s a pleasure talking to you, and thank you so much for your kind words.

This is an incredible time for technology in our society, the global economy is really being shaped by digital technologies. We see digital transformation impacting virtually every industry, the ability to connect everything to the cloud, to make everything intelligent. Just as an example at the last World Economic Forum in Davos, it was highlighted that over 60% of 2022 global GDP expected to depend on some digital technology.I think that’s the magnitude of the opportunity that we have.

Qualcomm, as the global leader in connecting everything and communications technology as well as processing in intelligence at the edge, we have a role to play, enabling all of those billions of devices to be connected, to be intelligent into providing processing capabilities for all of those different enterprises. And 5G would serve as the connectivity foundation for this digital era. Just to give an example, we've already seen the incredible impact of 5G as this current generation’s communication technology. In China, the 5G value chain will generate over 10 trillion yuan of gross economic output and support nearly 13 million new jobs. And when we look it globally, it’s about 25 trillion yuan of gross economic output with 22 million new jobs.It’s a great opportunity, not only for Qualcomm, but for the whole industry.

So the global economy is being shaped by digital technologies. We have seen this virtually every industry now is in the process of digital transformation. The ability to connect to everything, the ability to use artificial intelligence, to make everything intelligent. It's right in front of us.

And we see this is incredible opportunity, which is already materializing. Based on the World Economic Forum at last Davos data point,it was said that over 60 % of 2022 global GDP expected to depend on some form of digital technology. And that's an incredible magnitude. And it shows the role of the technology in the digital transformation and the revolution we see in the economy.

The company, Qualcomm is a global leader in connected processing and intelligent at the edge. Like we have done for mobile phones, we are going to play a role connecting billions of devices to the cloud, enabling the cloud economy and make those devices more intelligent.

Fang: Certainly, I think information technology is an industry with very fast and rich innovation. And many people have very high expectations for the development of 5G. So what role does 5G technology play in the current global economic recovery? And what impact does 5G have on the global economy in the long run? Thank you. Amon: 5G will be the last mile connectivity of this digital era. And when 5G was designed, it was really designed not only to connect mobile devices and the broadband of your smartphone, but also to enable every other industry. And we expect 5G when it’s fully deployed with all these capabilities to enable transformation in many industries as being the technology that connects everything to the cloud.

And we’ll have a great impact, as we think about GDP in some of the future jobs. As an example. In China, the 5G value chain would generate over 10.1 trillion of gross economic output, supporting nearly 13 million new jobs. In globally, that number go up to 25.1 trillion of gross economic output, and more than 22 million new jobs. It's an incredible opportunity.

Fang: I certainly agree.I think the relevant mobile technology has transformed people’s lives in the world economy in profound way. And I think people’s pursuit of faster connection and easier access will never stop. Apart from the revolutionary impact that may be brought about by 5G, I understand that even the R&D of 6G is on the horizon.

However, as exciting as these prospects may be, the industry is still bound by traditional supply and demand factors, which brings me to the next question about chip shortage. In the past years, the global chip shortage has been plaguing various industries. In addition to the imbalance between supply and demand brought about by the pandemic, what are the underlying factors leading to this unprecedented global shortage of chips? What should we learn from this crisis?

Amon: Look, great question. And we have been through a lot in the semiconductor industry, as we have dealt with incredible demand and how we have been working to manage supply. And I think that's the right question. Beyond the pandemic, there were a number of underlying factors that created this incredible demand for chips above the projections on supply.

The number one is the acceleration of digital transformation that we just talked about your prior question. It happened at a faster speed because of the pandemic. And that advanced consumption of semiconductor a number of years in, as we look into transforming industries that needed to become digital, to deal the pandemic. As a result of that, we can point to things such as enterprise transformation of the home. As we look at the hybrid of work environment and people working from home, the home became an enterprise, and it started to demand technologies that you normally see in an enterprise. We saw a significant upgrade of the broadband of the home, the computational capabilities at the home and so forth. As companies needed to continue to operate, they wanted everything to be connected to the cloud, and that drove more consumption of semiconductors.

The last thing I want to mention, because it’s very special, because it’s part of another revolution we’ve seen in technology is the merger of physical and digital spaces, in which technology, such as the beginning of augmented reality (AR), virtual reality (VR) , got accelerated, as well as digital twins of everything. All those things created an incredible demand for semiconductors.

And as we think about lessons learned from chip shortage, we can point to two things.

The number one, we all understand now, and it’s great for company like Qualcomm and many of our peers.

The semiconductors are important. They are essential to the economy. We find semiconductors in everything, as everything is becoming connected and intelligent, as we discussed earlier.

The second point is to fulfill our global economic growth ambitions, we need a supply chain for semiconductors that can enable that. And it's not only the need for the semiconductor supply chain to be global, but also to be resilient. We see now an incredible amount of focuses in making sure that happens.

Fang: So I guess the chip shortage is actually blessing in disguise of the semiconductor industry. But I think the recent episode of supply shortage demonstrates that the global supply chain is a very delicate system. It should be nurtured and protected by all involved. The semiconductor industry is highly dependent on the smooth running of the global supply chain. I think only with continued international cooperation can we work together to overcome the shortage in the near term and ensure its healthy growth in the long run.

So my next question is about the impact of the faster-than-expected digital revolution. The significance of technological revolution, as you know, is not just confined to the industry and sector itself, but it has also transformed daily lives in our economic growth model and society.

Some believe that while we are enjoying the dividends of technology revolution, the digital divide is also growing and bringing new inequalities. Another issue is spread of information. We supposed they should bring more rational dialogue among people.

But instead, we are seeing the so-called information cocoons, where people only communicate with like-minded peers, and this will lead to the extreme views and distrust among people. What’s your view on these issues? And what solutions should we propose to address them?

Amon: Those are great questions. And maybe let me start with the digital divide. Because that’s a very important one.

One thing that we’re very proud of Qualcomm, and it’s not only Qualcomm, it’s the entire mobile ecosystem, is that mobile technology has been the tool that truly democratized the internet. As we look at our smartphones today, we are always connected and you see a multitude of applications and services. The reality is, in many developing nations for many people, that was the first time that they got connected to the internet. And I feel that there was an incredible role played by the mobile industry with technologies just 3G and 4G and the smartphone technology, to move us one step closer into bridging this digital divide.

However, that’s not enough, and especially when you look at the high speed access to the internet. According to the ITU, nearly 40% of the world population still lacks access to the internet, particularly in low income and rural areas around the world. And we have the ability to do even better with technology such as 5G. 5G is the first time that a wireless technology can compete with fiber to bring a high speed fixed broadband. We see that happening across every carrier in the world. In addition to, of bringing 5G to mobile phones, we see an explosion of devices that are connecting homes and schools and small offices and home offices to the internet using 5G.

The second points that it is coming from 5G and it’s something that I find it fascinating and unfortunately is not as talked about. As 5G connects everything to the cloud, 100 % of the time in a reliable manner. 5G will democratize computing, like 4G democratized access to the internet. 5G would democratize computing, because as you are connected to the cloud, you can tap to the unlimited computing power of the cloud and run any workload. So even the ability of certain individuals no having the computing power, they will be able to have access now using the power of the cloud. And I think that's another very important step in bridging the digital divide.

You also asked me another question which is about access to information, and how we look of how information can continue play a role and bring us people together. I feel the incredible thing that we do with technology is to empower people and have the ability of people to communicate.

It’s also important to continue to enable the verse of opinions. And I believe that technology, at the end of the day, will continue to play a role in shaping this society for better.

Fang: Well said. I think we need to be, on one hand, mindful of positive gains from technical advances, but also about potentially disruptive impact. And technology should bring people together than dividing apart. But I think as an economist, I still think faster diffusion and application of technology is necessary, both for efficiency and equity reasons. Technology can be actually a great leveler of, as you said, inequality, but I think the government, industry and academia and also social organizations work together, define solutions, communicate its negative implications.

I think we’re nearing the end of a conversation. Mr. Amon, you have a question for me as well.

Amon: Absolutely. Qualcomm is very proud to have been a partner with China for a long time working with many of our Chinese partners for more than three decades. It’s almost as long as the company itself. We always believe that the strong partnerships between American and Chinese enterprises on the private sector will always be a stabilizing force in the bilateral relationship.

So my question to you, secretary general Fang is, in the current environment, what is your view on the critical factors to consider for multinational corporations and their Chinese counterparts? As they expand their win-win partnerships, driven by this global digital transformation right in front of us.

Fang: Thank you for your question. I know that Qualcomm has many successful partnerships with Chinese companies, local communities, and social organizations like the CDRF, and has also of course greatly been rewarded in the process. I also understand multinational companies, including Qualcomm, are facing head winds such as the rising protectionism on a global scale and also rising tensions between China and the U.S..

But I still suggest multinational corporations like Qualcomm stick to its original globalization development philosophy. I think the semiconductor industry is a prime example of a very successful and positive globalization. 

Qualcomm has been able to provide advanced technology and hardware and software platform to its customers around the world, and by its products and services need to be accepted also adapted into final products by your partners in other countries. And I also know that Qualcomm has been a very active participant in China’s opening-up process, and also a huge beneficiary of this process.

China has made it very clear, it will continue to open up this economy and also make innovation is top driver for the  future growth and the development of its the digital economy, which enjoys this very special advantage of increasing returns to scale. China, because it has a huge domestic market, a very complete industrial chain.

I think the multinational companies like Qualcomm, especially in the high tech sector, will enjoy a lot of growth potential coming out of China. So my suggestion to Qualcomm is to stay with China, grow with China by messaging more, by especially perhaps in R&D capacities, and also bringing new your latest technology and products to China.

And also that you said, I think the very mutually beneficial and strong cooperation between Qualcomm and Chinese enterprises serve as a backbone to a healthy and stabilizing relationship between China and the U.S. I particularly wish Qualcomm can leverage its position as the industry leader to promote further understanding and communication between China and the U.S. at various levels.

Confucius once said a gentleman gets along with others, but does not necessarily agree with them. So in other words, harmony, but not uniformity. We understand countries and cultures or civilizations are in serious differences from one another, but the world is more vibrant and colorful as a result. Right now, we’re facing common challenges, such as the pandemic, climate change, slow economic growth, and also the disruptive effect of a very rapid technological advances. I think only by working together can we hope to overcome these challenges, and a better world for future generations.

So in closing, Mr. Amon, I would like to thank you for your participation in today’s dialogue. As you know, the China Development Forum was established in year 2000 before China’s accession to the WTO, and the purpose of this forum has always been to engage with the world for common development. So with Qualcomm and others’ support, we would like to continue to serve that purpose by promoting communication and understanding for mutual benefit between China and the rest of the world.

Thank you again for joining us today. Hopefully I will see each other very soon in Beijing.

Amon: Thank you so much. Secretary general Fang, pleasure having this dialogue with you.