Qualcomm on Monday rejected a call from an activist investment firm to break up the US tech giant into groups focused on chip manufacturing and licensing of its technology.
The California group known for its big role in smartphone chips said it "welcomes input from our stockholders" including the proposal from Jana Partners made at an investor conference.
But Qualcomm said its board and management "periodically review our corporate structure" and have concluded that "synergies provided by our business model create more value for stockholders than could be created through alternative corporate structures."
According to a report in the Wall Street Journal, Jana had taken a $2 billion stake in Qualcomm as part of an effort to press the company to break itself up to boost shareholder value.
The report said Jana estimates that a split would "unlock value" for shareholders because Qualcomm earns the bulk of its profits from royalties from its patents and other technologies.