Qualcomm’s board has opted not to split the vendor in two, believing that “the company’s current corporate and financial structure bests positions Qualcomm to maintain its technology leadership and product strength”.

It said the decision comes after a review which looked at the “benefits and challenges” of the existing structure, as well as considering the alternatives. It has long been mooted that the company may be better served if its patent licensing business was split from its semiconductor arm, although the company now said that the combination will “drive the greatest long-term stakeholder value”.

And alongside the decision it announced good news, stating that its “mostly complete” fiscal first quarter has been strong relative to its guidance. This was attributed to 3G/4G device selling prices and shipments benefitting the licensing business, as well as gains realised from cost cutting.

“The strategic benefits and synergies of our model are not replicable through alternative structures. We therefore believe the current structure is the best way to execute on our strategy to build on our position in the ecosystem and deliver enhanced performance and returns”, said Steve Mollenkopf, CEO.

Earlier this year Qualcomm said it would review its options, alongside a “strategic realignment plan” which includes significant job cuts and an increased focus on its core businesses.

The company had faced pressure from activist investor Jana Partners, which had called for Qualcomm to consider a breakup.

Paul Jacobs, executive chairman of Qualcomm, said: “Over the years, as the landscape has evolved, we have periodically analysed or business structure to test whether we are best positioned to drive stockholder value, and we have made fundamental changes to enhance value when appropriate.”