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Qualcomm China Spotlight on Sustainability Report 2014

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Page 1: Qualcomm China Spotlight on Sustainability Report · PDF fileQualcomm China Spotlight on Sustainability Report 2014 3 From Our Chairman in China I am delighted to present our first

1Qualcomm China Spotlight on Sustainability Report 2014

Qualcomm ChinaSpotlight on SustainabilityReport 2014

Page 2: Qualcomm China Spotlight on Sustainability Report · PDF fileQualcomm China Spotlight on Sustainability Report 2014 3 From Our Chairman in China I am delighted to present our first

2 Qualcomm China Spotlight on Sustainability Report 2014

Contents

CHAPTER 1

CHAPTER 2

CHAPTER 3

From Our Chairman in China

Q&A with Our Chairman

Qualcomm’s Approach to Sustainability

About Qualcomm

Qualcomm in China

The Mobile Ecosystem in China

Awards in China

Innovation for Sustainable Progress in China’s Mobile Ecosystem

Qualcomm’s 2014 Milestones

Supporting Sustainable Industry and Advancing Technology

Advancing the Global Mobile Ecosystem with China

An Innovation Catalyst

Our Story: Thundersoft

Supporting Sustainable Growth

Advancing Communities with Technology

Philanthropy

Volunteerism

Employee Development

Our Story: Wireless Heart Health

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From Our Chairman in China

I am delighted to present our first Qualcomm China Spotlight on Sustainability Report as the new Chairman of Qualcomm in China. At Qualcomm, we believe that innovation is fundamental to sustainable human progress, as breakthroughs in technology lead to improvements in the ways we live and work. This is increasingly apparent in China, a country with a long and distinguished history of developing globally significant inventions. Modern China is reinvigorating this tradition by making innovation one of the core pillars of its sustainable development strategy. We are very excited to share the progress we have made with our Chinese partners in supporting innovation and sustainable development in 2014.

In today’s fast-evolving China, a pioneering spirit is flourishing. Chinese organizations and people are finding new ways to leverage mobile technologies, offering a wealth of new services at home and around the globe. The mobile ecosystem is dynamic and playing a key role in achieving national development goals. For example, China's Ministry of Industry and

Information Technology (MIIT) found that the first three years of China’s 3G deployment led to the investment of 455.6 billion RMB. This has enabled total consumption of 355.8 billion RMB in the mobile ecosystem that continues to reverberate throughout China’s economy. Now, with the rollout of 4G in full swing, mobile investment has reached nearly 162 billion RMB in fixed-asset investment in 2014 alone, up 20 percent from the previous year. Sustaining this growth will require continuous innovations in technology and its applications, and we are pleased to have a myriad of opportunities to contribute with our Chinese partners.

With innovation at the core of our DNA, we are dedicated to developing technologies that help empower people and enhance quality of life around the globe. We see this as being very much in line with China’s innovation-driven development strategies, such as the “National Guideline for the Development and Promotion of the IC Industry,” “Internet Plus” and “Made in China 2025” plans. Indeed, we see enormous opportunity for mobile technologies to power the strategic transformations required for sustainable progress and prosperity in China.

At Qualcomm, we define sustainability as a strategy that drives long-term growth and profitability through the inclusion of environmental, social and corporate governance dimensions in our business model. As you will see in this report, we are committed to supporting progress in these sustainable strategies through our core business activities. Our partnerships in China are providing us with abundant opportunities to make a positive impact in support of China’s sustainable development. One notable program that illustrates this is our Qualcomm® Wireless Reach™ initiative. Wireless Reach projects aim to strengthen economic and social development by leveraging mobile technologies to drive progress. We focus on underserved areas implementing programs in education, entrepreneurship, healthcare, the environment and public safety.

I am truly inspired by the creativity and commitment of our colleagues and partners in China. It reinforces my confidence that China will play a growing role in propelling the global innovation system and sustainable development in the years ahead. We at Qualcomm look forward to our continued participation in China’s innovation-driven transformations by working together with our partners for win-win success.

Frank MengChairman, Qualcomm China

3Qualcomm China Spotlight on Sustainability Report 2014

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How is Qualcomm partnering for shared success in China?

We are very excited about what we can achieve together with our Chinese partners by combining our respective expertise and technological strengths to fulfill China's growing demand for mobile solutions. In this spirit of collaboration, Qualcomm is engaged in a range of areas as part of an integrated strategy to grow and succeed with our Chinese partners. Here are a few examples:

To drive industry progress: We are working together with mobile device manufacturers, such as Huawei, ZTE, HTC, Nokia, LG and Sony as well as with Semiconductor Manufacturing International Corporation (SMIC), China’s largest and most advanced chip maker, to develop nano-processor chips for the future of Internet-enabled devices.

To advance technology: Over the past 30 years, we have cumulatively invested more than $32.8 billion in research and development (as of FY 2014), and we have established two R&D centers in Beijing and Shanghai. Qualcomm Research China was the first international Qualcomm Research division with a dedicated focus on air interface technology enhancement and new application development.

To incubate entrepreneurship: We have committed to invest up to $150 million in Chinese startup companies across all stages of development. This is to further the development of mobile technologies in Internet, e-commerce, semiconductors, education and health, with the overarching aim to help advance China’s mobile technology industries.

To support higher education: We have also continuously funded advanced wireless and computing research at key universities for the past 17 years, and this year, we committed to funding $500,000 in scholarships at leading Chinese universities for students studying engineering and computer science.

How is Qualcomm supporting sustainable development in China?

We see our most important contribution as supporting the development of an innovative economy. To flourish, innovation and invention require a variety of enabling conditions. These range from government policies, to accessible financing options, to organizational cultures that embrace openness, novelty and diversity. These “innovation enablers” are vital to unlocking and applying the power of the human imagination to achieve technological progress. For ideas to germinate and eventually bear fruit, a dynamic, mutually reinforcing ecosystem is required—one where visionaries and creators from diverse backgrounds can collaborate and work together on solutions and make breakthroughs. We see a vibrant mobile ecosystem in China today that resonates with our core company values, and we are very excited about the prospects of participating and contributing as we continue to grow together.

Another way we pursue sustainable development is by being a responsible corporate citizen in China, in alignment with our company culture. Throughout China, we partner with local organizations and provide advanced wireless technologies to communities and people to promote social innovation and economic transformation. Ultimately, we aim to create deep, sustained impact.

To protect our communities’ environments: We’ve been proactive about eliminating lead and other hazardous substances in our product designs for over a decade in China. We are a full member of the Electronic Industry Citizenship Coalition (EICC), a global coalition that continuously works to improve how our industry’s supply chain effects people and the planet.

To strengthen communities and pitch in: Through the Qualcomm Foundation, we support inspirational programs to help create educated, healthy, sustainable, culturally vibrant communities, and our employees volunteer with local nonprofits in cities across China to contribute to causes they care about.

To promote healthcare and children’s public safety knowledge: Through our Wireless Reach initiative, we launched the Mobilizing HERhealth and the Let’s Get Ready! Emergency Preparedness programs. These programs use mobile broadband technology to bring information and services to China’s female workforce and pre-school age children.

Q&A with Our Chairman:

This year, we committed

to funding $500,000 in scholarships at leading Chinese universities for students studying engineering and computer science.

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Sustainability Governance

At Qualcomm, we define sustainability as a strategy that drives long-term growth and profitability through the inclusion of environmental, social and corporate governance dimensions in our business model, specifically as they relate to our key spheres of influence: our workplace, supply chain and local communities, as well as the marketplace and public policy realm. Who is responsible for sustainability at Qualcomm? The short answer is “everyone.” We’ve integrated sustainability throughout our Company, from our daily operations and executive leadership to our Board of Directors. Sustainability factors into our strategic decisions, our product design and the everyday thinking and behavior of our employees worldwide.

We established our Qualcomm Sustainability and Reporting (QSR) governance structure in 2010 to better facilitate accountability, transparency and ongoing improvement of our programs. Our intent was to more deeply ingrain sustainability by embedding its governance within our existing corporate structure. Since then, we’ve continued to shape our QSR governance to best meet the evolving needs of our business and stakeholders.

Our sustainability initiatives are managed by our cross-divisional QSR Leadership Committee, which reports annually to the Governance Committee of our Board of Directors. Composed of executives and senior management, the Committee’s leadership and access to the Board helps ensure that sustainability remains a central component of our business strategy.

We’ve organized our sustainability efforts into five areas of focus: Governance, Products, Workplace, Environment and Community. A QSR committee oversees each focus area, implementing directives from the Leadership Committee and turning them into companywide practices. Each QSR committee includes senior management and other subject-matter experts from across our Company.

Our QSR Governance Structure

Qualcomm’s Approach to Sustainability

Our Governance Committee We demonstrate accountability, transparency, integrity and ethical business practices throughout our operations and interactions with our stakeholders.

Our Products Committee We meet or exceed industry standards for product responsibility and supplier management.

Our Workplace Committee We provide a safe and healthy work environment where diversity is embraced and various opportunities for training, growth and advancement are strongly encouraged for all employees.

Our Environment Committee We expand our operations while minimizing our carbon footprint, conserving water and reducing waste.

Our Community Committee We grow strategic relationships with a wide range of local organizations and programs that develop and strengthen communities worldwide.

Board of Directors Governance Committee The Committee’s oversight of sustainability is critical to our progress. They annually review the Company’s policies and programs concerning sustainability.

QSR Leadership CommitteeComposed of executives and senior manage-ment, the Committee's leadership and access to our Board of Directors help ensure that sustainability remains a central component of our business strategy.

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Maintaining a Culture of Sustainability

To help keep sustainability top of mind, we regularly engage our employees through sustainability-related programs and events. For three months in 2014, our “Spotlight on Sustainability” campaign offered and promoted a variety of programs globally to increase employee awareness of and involvement in our sustainability initiatives. A lecture series featured expert presentations on a range of sustainability topics such as climate change, as well as internal presentations on Qualcomm’s efforts to create environmentally-friendly facilities and our vision for sustainable automobiles and cities, among other subjects.

Through QCares Experience, our annual global volunteer program, more than 2,200 employees across the globe donated nearly 8,500 volunteer hours to more than 100 nonprofit projects in 33 locations. On Earth Day 2014, employees in nine countries gave their time to learn about environmental causes and lend a hand to help make a difference. Employees in many locations collected and recycled e-waste. In addition, employees also had the opportunity to help with reforestation, learn about organic farming, create family emergency plans and test-drive electric cars.

To better gauge our employees’ awareness and understanding of our sustainability efforts, and to determine what topics they are most interested in, we conducted our first companywide sustainability survey; more than 2,300 employees responded. For each employee who completed the survey, Qualcomm Foundation made a $10 charitable donation to World Wide Fund for Nature to support their efforts to develop, embrace and implement lasting solutions to global environmental challenges. The survey affirmed our understanding that Qualcomm employees care about sustainability and want to contribute to our efforts. Employees offered great ideas for improving our sustainability, including a suggestion to eliminate bottled water from our headquarters in San Diego—which we are now in the process of doing.

The survey also showed us that we can do a better job of communicating with employees about our priorities, goals and initiatives. One way we do that: an internal website dedicated exclusively to educating and engaging employees year-round in our sustainability programs and events.

Qualcomm’s Global Sustainability Priorities

In 2013, we worked with consultants from Business for Social Responsibility (BSR) to conduct a materiality assessment, identifying the sustainability issues that are most important to our business and to our key stakeholders, which include communities, nonprofit organizations, employees, governments, investors, suppliers and customers. Our analysis helped us identify our key business drivers—employee attraction and retention, future growth strategy, innovation, meeting customers’ needs and supply chain management. We’re focusing our resources, programs, and reporting on our top sustainability priorities globally and in China.

Transformative Technology: Solutions for a sustainable world Our innovations are helping to empower people and enhance the quality of life around the globe.

Inclusion and Diversity: Creating a company that reflects the worldWe celebrate the diversity among our employees and recognize that our varied backgrounds, experiences and ideas are critical to our success.

Privacy and Security: Promoting data protection across the mobile ecosystemIn our Company, in our products and in the mobile industry, we’re working to process personal data responsibly and to make data more secure.

STEM Education: Cultivating tomorrow’s workforceWe’re working to promote and improve STEM education at all levels and to expand opportunities for underrepresented students.

Sustainable Product Design: Protecting people and the planetWe’re focused on creating products in ways that don’t harm individuals, communities or the environment.

Ethical Governance: Doing business “The Qualcomm Way”We’re committed to doing business with the highest level of integrity, respecting our customers, business partners and each other.

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CHAPTER 1

About Qualcomm

Qualcomm started as an idea. An agreement. A pact. In 1985, seven individuals met in a den in San Diego for the purpose of creating “quality communications.” Today that den spans across more than 170 offices in more than 40 countries and has evolved into a great example of a telecommunications industry startup success story: Qualcomm Incorporated.

In China and many other countries, you’ll find our innovations in places you might not expect: cars, classrooms, homes, hospitals and the infrastructure of cities. Three decades after our founding, we’ve made it possible for mobile communications to go digital and for computing to jump from desktops to smartphones. Meanwhile our technologies and collaborations with our partners are contributing to the sustainable development of China and its mobile ecosystem. We are bringing big ideas to life faster, creating innovations that power the experiences that enrich our lives and connecting people on an unprecedented scale. We believe that if we challenge the boundaries of what’s possible, we can make every day better. And if every day can be better, why wait.

Who is Qualcomm, and what do we do? We are engineers, scientists and business strategists, working together to produce a vast array of technologies powering everything from the smartphone in your pocket, the tablet on your living room table, that wireless modem in your briefcase… it could even be that navigation system in your car or that camera

strapped to your chest. We are from many different countries and speak many different languages. We come from diverse cultures and have unique perspectives, but there is one thing that unites us all. We are driven to invent new ways to improve communication around the globe.

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CHAPTER 1

Qualcomm in China Since first arriving in China in the 1990s, Qualcomm has been devoted to supporting a vigorous and robust mobile industry by enabling and collaborating with Chinese operators, device and infrastructure manufacturers and application developers. Our ideas and partnerships have helped drive the evolution of digital communications and connect people in China and around the world. They have also supported shared success with Chinese partners across China’s mobile ecosystem and at a global level.

China is now focusing on innovation as a driver for national development though initiatives such as the “National Guideline for the Development and Promotion of the IC Industry,” “Internet Plus” and “Made in China 2025” plans. We work with our partners to advance innovation in the mobile ecosystem, nurture high-value business activities, mobilize traditional industries and services, and align with China’s policy initiatives to achieve positive social and economic development in underserved communities.

As we look to the future, we will continue to participate in China’s mobile industry and in the creation of an innovation-based economy through investments in cutting-edge technologies, providing the most advanced products to Chinese businesses all along the mobile value chain and improving the lives of Chinese people.

Qualcomm’s Impacts at a Glance

Qualcomm® Snapdragon™ * 400 and 200 chip series-based designs announced or shipped in China (as of Nov 2014).

Qualcomm has worked with more than 120 partners on 3G CDMA (as of Nov’14) and more than 75 partners on 4G LTE (as of Nov’14) in China.

120+

470+

* Qualcomm Snapdragon is a product of Qualcomm® Technologies, Inc.

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CHAPTER 1

The Mobile Ecosystem in ChinaHow Qualcomm Works with Our Chinese Partners

Areas of Contribution Our Partners Impact Areas

Core Technology and Design • Local researchers

• Qualcomm R&D Centers in Beijing and Shanghai work seamlessly with Qualcomm R&D teams across the world on projects serving China

• Joint R&D programs with leading universities across China

For an innovative and technology-driven Chinese economy

• Universities and research institutes

• STEM learning organizations

• Entrepreneurs and start-ups

• Wireless Reach: research and government-affiliated organizations, industry partners and content providers

• Funded advanced wireless and computing research at leading universities for the past 17 years

• Committed $500 thousand in scholarship funds to leading Chinese universities to promote STEM education and expand opportunities for young innovators in China

• Strategic partner of FIRST TMglobally and sponsor of FIRST Tech Challenge contests in China to inspire and encourage K-12 young talents’ interest and participation in robotics and STEM

• Committed up to $150 million strategic investments in mobile technologies in the areas of Internet, e-commerce, semiconductor education and healthcare

• Wireless Reach programs inspired the adoption and implementation of advanced wireless health and education services

State-of-the-art semiconductor industry • Chipset makers

• For over 10 years, invested engineering resources to help SMIC advance technically, grow its product portfolio and expand its locations in China.

• Signed agreement in 2014 to provide technology expertise and support to SMIC to establish leading-edge 28nm process technology manufacturing and chipset procurement

Manufacturers and product developers

• Network carriers

• Original Equipment Manufacturers: hardware and component manufacturers for handsets and mobile devices

• Facilitated China’s mobile industry transition from 2G to 3G/4G advanced mobile communications technologies by:

Supporting network carriers with network design, testing and optimization

Supporting OEMs with device design, development and testing

• Helped to drive the business growth of Chinese OEMs both domestically and overseas with the Qualcomm® Reference Design* program

• Provide advanced technology support to key network infrastructure OEMs to jointly drive the best consumer experience

* Qualcomm Reference Design is a program of Qualcomm Technologies, Inc.

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CHAPTER 1

Over the past year in China, we are pleased to have been honored by industry organizations for our innovative products as well as by organizations focused on sustainable business practices and contributions.

Awards in China

Technology and Innovation:

Sustainability:

China Youth Development Foundation (CYDF) recognized Qualcomm for our multiple donations toward earthquake relief totaling 3 million RMB.

The Annual Creativity in Electronics Awards (ACE) recognizes companies, technologies and people that facilitate remarkable advances and innovations in China’s electronics industry.

• Winner of Mixed Signal Processor Product of the Year: Awarded to Qualcomm for our Snapdragon 801 processor

• Honoree for RF Product of the Year: Qualcomm was honored for our Qualcomm RF360™ * front-end solution, designed to address band fragmentation in LTE and LTE-Advanced carrier aggregation

Qualcomm was awarded for our recognized global commitments to advancing the ideals and mission of FIRST.

FIRST Founder’s Award, 2014

CYDF Project Hope’s 25th

Anniversary Outstanding Contribution

Award

China's electronics design publication held a contest themed around “the impact of future innovation”; it judged 130 manufacturers in China and ranked Qualcomm among the top 10 companies.

Ranked by EDN China,

Top 10 Sustainable Companies,

2014

China ACE Awards 2014

* Qualcomm RF360 is a product of Qualcomm Technologies, Inc.

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CHAPTER 2

Innovation for Sustainable Progress in China’s Mobile Ecosystem

Around the world, mobile devices have become ubiquitous in daily life, bringing with them a host of benefits and conveniences. Globally, mobile connections

already passed the 7 billion milestone in April 2014, and in China, mobile connections have reached 1.13 billion. The advance of mobile technology has been one of the most powerful forces transforming the developing world. In China, mobile broadband has had an enormous impact on GDP growth and employment. And with the potential of mobile technologies, it comes as no surprise that China’s government is now emphasizing scientific and technological innovation within key industries, including mobile, as part of its official sustainable development policy.

We are excited to continue contributing to this effort: through our partnerships with Chinese businesses throughout the mobile value chain, we are advancing the benefits of mobile technology in China. One of our most important ambitions is to create technology in a sustainable way that not only changes lives, but is also accessible to all. Part of this involves actively supporting our partners in using our technologies to develop the most transformative products, and promoting a healthy market for those products in China and around the world. Another part of this is nurturing innovation within our company, our partners and young entrepreneurs everywhere. This way of thinking is found throughout our operations worldwide, as we prioritize R&D investment, research, collaborations with think-tanks and universities, and fostering the inventiveness of the next generation. We are delighted that our work in China is helping expand innovation and technology capabilities that are already supporting sustainable development and future prosperity.

At the end of 2014, ~557 million people in

China were accessing the Internet via mobile phones, accounting for ~86 percent of the country's netizen population.

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CHAPTER 2

Qualcomm’s 2014 Milestones Working in close collaboration with our Chinese partners, Qualcomm has reached many milestones focused on enabling innovation and development in China. Below are some of the highlights from this year.

2014 Qualcomm R&D Open Day

At the R&D Open Day in August 2014, Qualcomm exhibited many new R&D products and announced our commitment to continuously invest in R&D development in China.

FIA Formula E Showcased Wireless Electric Vehicle Charging

At FIA Formula E’s inaugural all-electric car championship, which kicked off September 2014 in Beijing, Qualcomm revealed our Qualcomm Halo™ Wireless Electric Vehicle Charging* system and new connected-fan experiences.

Qualcomm Reference Design and Wireless Innovation Summit

At the summit held in Shenzhen in May 2014, over 1,500 software developers, hardware suppliers, smartphone company representatives and media discussed the promising development of Chinese brands in the 4G age and how to differentiate advantages and opportunities of overseas business expansion.

Semiconductor Manufacturing International Corporation (SMIC) Agreement

Qualcomm signed an agreement in July 2014 to provide technology transfer and support to SMIC to establish leading-edge 28nm process technology manufacturing facilities and chipset procurement.

Qualcomm Committed $150 Million to Strategic Venture Fund in China

In July 2014, Qualcomm committed to invest up to $150 million in Chinese startup companies across all stages of development that further the development of mobile technologies in Internet, e-commerce, semi-conductors, education and health.

* Qualcomm Halo WEVC technology is licensed by Qualcomm Incorporated.

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CHAPTER 2

Supporting Sustainable Industry and Advancing Technology

With China's emphasis on national sustainability, the country has taken a leadership role in climate change mitigation by using U.S. Green Building Council Leadership in Energy & Environmental Design (LEED) certification as a tool to develop healthier, more sustainable communities. In 2014, we maintained a LEED Silver certified facility in Shenzhen.

Supporting Sustainable Products

We’re focused on creating products in ways that don’t harm individuals, communities or the environment. We are committed to sustainable practices in our products and supply chain, and we monitor the processes and materials that go into our products to make them as sustainable as technically and commercially possible.

We take preventive measures regarding certain chemicals even if science hasn’t indicated clear environmental or health hazards. Our own policies are often more stringent than applicable law. Not all brominated and chlorinated compounds, for example, are prohibited by law, but we’ve been proactive about eliminating them since 2009 because of the potential hazards they pose.

We have also been proactive in removing lead from our products since 1999. Since 2010, we have incorporated lead-free design in all new semiconductor products whenever technically and economically feasible. In 2014, we selected a number of legacy semiconductor products for redesign to render these products lead free.

SMIC Technology Enhancements

As one of the world’s largest fabless semiconductor vendors and a world leader in 3G, 4G and next-generation wireless technologies, we work with companies downstream as a chipset provider on technology and sustainability issues. For 10 years, Qualcomm has worked with Semiconductor Manufacturing International Corporation (SMIC), the largest and most advanced China-based semiconductor foundry. We have invested and will continue to invest engineering resources to help SMIC advance technically, grow its product portfolio and expand its operations in China. Qualcomm has also helped SMIC manage their manufacturing chain. The synergetic and constructive Qualcomm-SMIC relationship supports the Chinese government’s priority of accelerating the development of the semiconductor industry.

China is implementing measures to encourage the development of new technologies and accelerate the growth of key advanced industries, which will support Chinese companies moving up the value chain as they focus on high-tech and high value services. At the same time, this shift up the value chain is accompanied by a stronger mindset for protecting the environment and using technologies to improve lives in new ways. We work with our partners to ensure that our products are produced sustainably and that people can rely on the technologies within them.

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In July 2014, SMIC and Qualcomm Incorporated announced that SMIC and Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, are working together in connection with 28nm process technology and wafer manufacturing services in China to manufacture Qualcomm® Snapdragon™ processors that are built for mobile devices. This collaboration will help accelerate SMIC’s 28nm process maturity and capacity, and will also make SMIC one of the first semiconductor foundries in China to offer production locally for some of Qualcomm Technologies’ latest Snapdragon processors on 28nm node, both PolySiON (PS) and high-K dielectrics metal gate (HKMG).

CHAPTER 2

Analysts estimate Internet of Everything objects, which contain sensing, monitoring, actuating and/or processing capabilities, will be between 25 and 50 billion units by 2020.

Sustainability of Our Supply Chain

Our sustainability efforts reach beyond our operations to our supply chain and our industry as a whole. As a full member of the EICC, we’re working with our peers to continuously improve the impacts of our industry’s supply chain on people and the planet. Kevin Caffey, Vice President of Quality and Reliability at Qualcomm Technologies, Inc., was elected to the EICC Board of Directors in 2014.

We require all of our semiconductor manufacturing suppliers to adopt the EICC Code of Conduct, participate in the CDP water and energy surveys and/or submit information via the EICC Environmental Reporting Tool. In 2014, all of our top semiconductor suppliers provided us with data on their greenhouse gas emissions and water use, which we’ll use to set benchmarks for future sustainability strategies. We were pleased to find that 90 percent of our top suppliers had clear goals for reducing both water consumption and greenhouse gas emissions, and we’re currently assessing how we can better support them in achieving those goals.

Expanding Connections in China

Since the 1990s, Qualcomm has worked closely with the Chinese government and China’s mobile operators to help ensure the highest quality communications possible—voice and data—for Chinese people. Qualcomm has been one of the drivers of the development and adoption of first CDMA, then WCDMA, and now LTE technologies. These technologies are the foundation of a great mobile experience. Moving from 1G analog mobile voice, to CDMA and WCDMA, Qualcomm technologies not only overcame the challenge of limited wireless frequency and enabled users to share the same spectrum, but also paved the way to mobile data for multimedia, apps, navigation services and more. Across China, our technologies are enabling growth in all sections of the mobile value chain and serving more mobile subscribers than any other region on the planet.

In the 2000s, Qualcomm worked with Chinese operators to localize the latest mobile technologies. At the time, operators were using both GSM and CDMA, two different mobile networks. For a CDMA phone to work in China, it had to be able to use a SIM card containing the user’s identification and billing information. Qualcomm worked to develop a solution that allowed users to roam across GSM and CDMA networks and helped enable more integrated, widespread mobile communication in China.

The first three years of 3G mobile broadband resulted in a total economic

impact of 4.3 trillion RMB (~$708 billion) and 3.9 million jobs.

China is now prioritizing expanding universal broadband access and the country’s network coverage to meet the growing demand for broadband connectivity and speed. GSMA Intelligence predicts that by 2019, China will have 1.3 billion 3G/4G users. To satisfy this exploding demand for mobile services, the 2011 “Broadband China” strategy is working to build out the country’s next-generation networks. We remain committed to collaborating with our Chinese stakeholders to find innovative solutions to help meet this demand, bridge the digital divide and sustain growth.

25billion units

50billion units

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Since the Reform and Opening in 1978, China has encouraged and supported participation in and integration with the global economy. China has many policies that aim to not only nurture overall economic development while expanding opportunities for continued development, but also to promote the export of China’s goods and services, growing domestic multinational corporations.

For over 10 years, Qualcomm has worked closely with Chinese companies to bring the latest technologies to consumers. Now we have more than 120 such partners, and we also support the development of local technologies and products. For example, in Q4 2012, three of the top ten smartphone manufacturers by unit sales were Chinese. Now in 2014 in the same quarter, six out the top ten are Chinese.

CHAPTER 2

Advancing the Global Mobile Ecosystem with China

In 2014 alone, the mobile industry contributed

3.7 percent to China’s GDP.

Qualcomm Reference Design

One way we are helping to increase sales and revenue growth for Chinese original equipment manufacturers (OEMs) both domestically and overseas is through the Qualcomm Reference Design (QRD) program. We work with our partners to make a complete smart phone, pre-tested and certified in such a way that they can take a product from concept to market in less than 60 days. The QRD program provides access to a broad ecosystem of hardware component vendors and software application developers, and the tools and resources device manufacturers need to quickly and cost-effectively commercialize devices. Moreover, as the rollout of LTE has posed new challenges to our OEM customers, the QRD program has gone a long way to accelerate the development process and resolve these challenges so that China’s device manufacturers can meet domestic as well as global demand.

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R&D: Challenging the Impossible

Qualcomm Research

At Qualcomm Research, we’re excited about the future. By developing and defining new technologies, Qualcomm Research is transforming the way we will live tomorrow.

Qualcomm Research China was established in 2008 as the first international Qualcomm Research division with dedicated focus on air interface technology enhancement and new application development. At Qualcomm Research China, many of the industry's greatest minds endeavor to push what is possible in mobile technology. Together, we focus on future technological advancements that are three to ten years from commercialization. We also collaborate with our key business partners in China to enable commercial deployment of leading-edge mobile solutions regionally and worldwide.

At Qualcomm Research China, we highly value teamwork and partnership as well as individual contributions. We maintain a very close tie with Qualcomm Research San Diego, Qualcomm’s global R&D headquarters, and collaborate on many projects. Qualcomm Research engineers engage in a wide variety of exciting and technically challenging projects. Each project pushes the envelope of what is possible in mobile technology, setting the stage for the devices, applications, services and business models of tomorrow.

CHAPTER 2

An Innovation Catalyst

$32.8 billion

cumulative R&D investment over our company’s life (as of FY 2014) and about 20 percent of our revenue in the last five fiscal years, with

$5.5 billion in FY 2014 alone.

Qualcomm is a company of invention. Our founding principle has been to invest in and invent technologies that will advance the entire mobile industry. The mobile industry has grown tremendously in the past few years, following the success of mobile devices and applications. To continue this success for the future, we prioritize investments in the ideas of our company, our employees, our partners and young innovators, which will one day turn into competitive businesses that will support the sustainable development of China’s mobile industry. We see our role as being an innovation partner working with actors across the mobile innovation ecosystem to achieve shared value and success.

Since we first introduced our technology and products in China well over a decade ago, Qualcomm has helped grow China's wireless telecommunications industry by investing significantly in research and development and collaborating across the Chinese mobile ecosystem. We’ve constantly taken risks, investing in ideas, projects and people, to solve big problems that many once said were impossible. Qualcomm began R&D on OFDM, a cornerstone component of 4G/LTE technology, roughly 10 years before any significant commercial rollout. Today, we continue to invest billions in R&D and take significant risks to invent technologies that advance the mobile industry. Our Chinese partners have been among our greatest collaborators for progress.

Qualcomm Research China’s areas of expertise

TD-SCDMA

LTE

Femtocell

Embedded software

development

WLAN/3G interworking

W-CDMA/HSPA+

CDMA2000

EV-DO

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Qualcomm ImpaQt

If you had an idea that could change the world, what would you do with it? At Qualcomm® ImpaQt™, our employee innovation program, we encourage and collaborate with our entrepreneurial employees to make their best technology ideas become reality. By providing access to subject-matter experts, market knowledge, sponsors and prototyping support, along with resources to fund and commercialize their inventions, we guide our inventive employees through a thoughtful process of ideation, review and prototyping that helps smooth out rough edges and reduce the fear factor of the sometimes chaotic journey of ideation and exploration.Already, hundreds of new ideas have been submitted from around our global centers since the program’s rollout in 2012, with nearly 50 percent participation by Qualcomm employees, resulting in 200+ invention disclosures.

In China, we are looking forward to nurturing more “intrapreneurs” and inventions that inspire and generate “change the world” ideas through Qualcomm ImpaQt. Across all our locations in China, we have already had 286 ideas submitted since the start of the program. Qualcomm ImpaQt also works in partnership with other companies to exchange innovation best practices and corporate innovation models that inspire strategic invention and collaboration. We believe there is no greater joy than supporting people who care and are trying to change the world in their own unique way through their ideas, and we take great pride in helping our employees realize their dreams of making the world a better place.

University Engagement

TSINGHUA UNIVERSITY$100,000 IN TOTAL 33 SCHOLARSHIPS

APPLICANTS: UNDERGRADUATESSTUDYING: ENGINEERING OR CS

CHAPTER 2

2014 UNIVERSITY SCHOLARSHIPS

PEKING UNIVERSITY$100,000 IN TOTAL TWO ENDOWED SCHOLARSHIPS

APPLICANTS: UNDERGRADUATESSTUDYING: ENGINEERING OR CS

Qualcomm believes that fostering the next generation of inventors is essential to sustaining continuous growth and innovation in China’s flourishing technology industry. As the world evolves and technologies continue to advance, the traditional boundaries of mobile technology get redefined. That makes the partnerships we’ve fostered with universities even more important since our university partners are, and will continue to be, key contributors to our success in emerging research areas.

At Qualcomm Research China, we have provided funds for academic research for over 15 years. We focus on sustained industry partnership and collaborate with many leading university and research labs in China. Through our joint research programs with universities, including Tsinghua University, Beijing University of Posts and Communications, the Chinese Academy of Sciences and the Chinese University of Hong Kong, we have published more than 600 scholarly articles and have established joint laboratories on school campuses. Qualcomm’s joint programs, together with universities, provide beneficial opportunities for thousands of students who will drive China's wireless industry in the future as the next generation of mobile technology innovators.

Qualcomm ImpaQt

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Qualcomm Ventures: Enabling China’s Entrepreneurs

What do Chinese entrepreneurs have in common with the global leader in wireless technology? The answer: just about everything. Qualcomm Ventures is the investment arm of Qualcomm Incorporated. In our early days, we too were an unknown startup in San Diego, with the same challenges and opportunities startups face each morning. To this day, this entrepreneurial spirit is something we cherish. The vision, the obsession and the courage to pursue a dream—this is still the best description of who we are. As a partner to China, we take special pride in helping our portfolio companies create real value. We actively work with them to overcome obstacles. We provide a host of resources to get them to the next level. And we’re willing to step aside when the time is right. After all, we only succeed when they do.

Chinese companies receiving investments from Qualcomm can benefit from Qualcomm’s insights on mobile technologies and leverage Qualcomm relationships throughout the industry. Qualcomm Ventures currently has a portfolio of more than 120 active companies across the globe and also invests in seed stage companies through its QPrize™ Mobile Internet Startup Competition, which evaluates and awards seed funding for promising early stage Chinese entrepreneurs.

Qualcomm Ventures 2014 Commitments

• In July 2014, we made a commitment to invest up to $150 million in Chinese startup companies across all stages of development. Our support will go to these companies to further the development of mobile technologies in the following areas: Internet; e-commerce; semi-conductors; education and health. Out of this commitment, Qualcomm also announced that Cambridge Wowo, a mobile education startup, and Boohee, a mobile healthcare company, were recently funded.

• In December 2014, we and our subsidiaries announced that $40 million of our July 2014 $150 million commitment would go to four Chinese companies in partnership with China Walden Venture Investments, L.P. fund, which is primarily focused on investing in semiconductor or semiconductor-related companies with business in China. We invested in 7Invensun, an eye-tracking solution provider; Chukong Technologies, a mobile entertainment platform provider; inPlug, a smart home device/platform solution provider; and Unisound, a voice recognition and processing technology provider.

CHAPTER 2

QUALCOMM VENTURES GLOBAL INVESTMENTS

San Francisco, CA

Sao Paulo, Brazil

London, UK

Haifa, Israel

Bangalore, India

Beijing, China

Seoul, South KoreaSan Diego, CA

31%Consumer

5%Infrastructure

12%Healthcare

9%Semi/Components

9%Cloud/Enterprise

5%Hardware

29%Software

QUALCOMM VENTURES INVESTMENTS BY SECTOR

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QPrize 2014

QPrize™ is Qualcomm Ventures’ seed investment competition. It is designed to provide entrepreneurs their first level of funding so they can launch their idea into a successful startup business. We look for bright, energetic and resourceful entrepreneurs who have a passion for bringing new technologies and services to market. Our goal is to have QPrize act as a catalyst for our winners, providing them the initial capital to launch their great ideas and support the company until its first institutional funding round.

QPrize China 2014 kicked off in May 2014 at the “mobile Internet” session of Demo China Startup Competition 2014. The entire competition lasted four months and covered five cities, including Changzhou, Beijing, Chengdu, Changsha and Hangzhou. There were 348 submissions to QPrize China 2014, a 53 percent increase from the previous year. Out of the 348 participating startups, we identified 10 finalists.

The top two winners of QPrize China 2014, Liwushuo and 7Invensun, then competed with 10 other winners from Demo China in a finale hosted by the Hangzhou TV station. The program was broadcasted the following September. Liwushuo and 7Invensun ranked fifth and seventh respectively among the finalists.

FIRST Robotics Competitions

FIRST is a not-for-profit, public charity that inspires young people to be science and technology leaders, by engaging them in exciting mentor-based programs that build science, engineering and technology skills, with the aim to foster well-rounded life skills, including self-confidence, communication and leadership. We are a proud supporter of the FIRST robotics programs in China, aiming to motivate and nurture young inventors in China to pursue education and careers in science and technology.

Consistent with this vision, we sponsor several FIRST teams and competitions in China, Canada, Israel and the United States. Since 2007, we have provided over $3.5 million in charitable donations as well as countless volunteers and hours of staff time. Members of our senior management are involved with the organization as advisors and judges, and Qualcomm employees volunteer as mentors for teams of young inventors and as judges at regional competitions around the world.

As a FIRST Strategic Partner, we once again increased our support of FIRST in 2014. For the 2014-2015 FIRST Robotics Competition season, we will be sponsoring teams and competitions in Beijing, Shanghai and Shenzhen, impacting over 40 teams and hundreds of students.

Toward Sustainable Growth through an Innovation-based Economy

What is the ultimate goal of all this progress? Improving people’s lives. At Qualcomm, we are already working directly with the people and communities who can see enormous benefits from an innovation-rich economy. Read on to learn about how Qualcomm is supporting sustainable growth through bringing advanced wireless technology to underserved communities globally and investing in projects that foster entrepreneurship, aid in public safety, enhance the delivery of healthcare, enrich teaching and learning and improve environmental sustainability.

CHAPTER 2

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Thundersoft allocates 15 percent of their revenue annually to R&D—a figure that is, on average, greater than most tech companies in China.

Our Story: Partnering with a Next-generation Chinese Tech Company

CHAPTER 2

Thundersoft is a Chinese smart device platform company, working with both chipset makers and OEMs to integrate core hardware and software technologies into mobile-enabled devices essential to our lives. Co-founded by Hongfei Zhao in 2008, Thundersoft quickly became a rising star in China’s mobile ecosystem with 452 million RMB in revenue in 2014 and an IPO planned in 2015.

In 2011, Qualcomm Ventures and three other investment companies announced a 100 million RMB strategic investment into Thundersoft. Thundersoft, as a fast-growing company, sought to enhance its competitive edge in China’s maturing and fast-paced region. Meanwhile Qualcomm Ventures, as an established company, sought to extend technology capacities in fast-growing regions in order to advance the mobile ecosystem globally. This investment solidified a win-win partnership for both companies.

Mr. Zhao mentioned that the strategic partnership created by the investment brought Thundersoft the opportunity to work with one of the most talented teams in the industry and gave the company the ability to build up knowledge and know-how in leading-edge technologies. He also said that the partnership with Qualcomm Ventures brought the company valuable brand awareness and favorability, which helped it gain wider recognition.

“Qualcomm Ventures plays a key role in our business, offering strategic counsel in areas such as business development and investment direction,” according to Mr. Zhao. With counsel from Qualcomm Ventures, Mr. Zhao mentioned he has been able to avoid some unfavorable investments and has refined the company’s future business strategy.

Looking forward, Mr. Zhao said the company is strategically entering three new areas: automotive, Internet of Everything and enterprise mobility. These are areas where the company sees additional opportunities to drive sustainable growth by leveraging its existing collaborations with Qualcomm, as the two companies share a similar vision on the role of mobile technology in daily life.

Through our collaboration, Thundersoft and Qualcomm are providing world-class solutions to businesses, entrepreneurs and innovators in China’s mobile ecosystem that will change the way we interact and communicate in the future.

Hongfei ZhaoPresident and Co-FounderThundersoft

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CHAPTER 3

Supporting Sustainable Growth

As a company, we strive to advance wireless communications globally by nurturing cutting-edge breakthroughs and products of the future, within

our partnerships and future inventors. At the same time, as a business, we are also committed to sustainable growth and corporate social responsibility, which encompasses our responsibilities to our employees and to the communities in which we operate. In China, this means we work to protect local environments, we contribute to organizations to provide relief and support, we encourage a spirit of volunteerism within our employees and we pledge to provide our employees an overall positive work environment for personal as well as professional growth.

At the heart of Qualcomm’s culture is the belief that through technology, we all have the opportunity to create value, extend our reach and make a genuine impact.

21Qualcomm China Spotlight on Sustainability Report 2014

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Number of Provinces and Municipalities: 11Number of Beneficiaries: 853,350

Ningxia

Gansu

Sichuan

Guizhou

Chongqing

Anhui

Shandong

HebeiBeijing

Guangdong

Shanxi

Xi’an

Hengshui

Wenchuan

Guiyang

Mobile Vision Project

3G Mobile Medicine

Wireless Heart Health

Mobilizing HERHealthLet’s Get Ready Mobile Safety Project

3G Connected Computer Classroom Program

Enabling Microfinace Loans

Bringing Internet Connectivity to Schools in Rural China

CHAPTER 3

Advancing Communities with TechnologyWireless Reach

Around the world, our products empower people and enhance quality of life. They are enabling economic development, “smart” urban infrastructure, efficient transportation, cost-efficient healthcare and more. Our Wireless Reach initiative is an example of how our transformative technology can be applied in China. It is a strategic program that brings advanced mobile technology to underserved communities, improving lives with projects that strengthen economic and social development. We partner with local organizations, building upon our combined core competencies to innovate uses of mobile technologies for social good in order to drive human and economic progress in resource-scarce areas. In 2014, Wireless Reach had over 100 projects in 40 countries around the world.

Over the course of almost a decade of work, we have collaborated with more than 17 organizations in China. In 2014, our total number of Wireless Reach programs in China since its inception has reached nine, covering 11 provinces and municipalities. Collaborating organizations included government-affiliated foundations, nonprofits, local education, academic and healthcare institutions and private sector companies. In each of these projects, Qualcomm is the primary funder of the initiative, and we provide wireless expertise and project management. Our partners contribute relevant subject area expertise, application development and technical support, program content, training and implementation support for the rollout of the programs.

In 2014, our projects focused on enriching teaching and learning experiences, enhancing the delivery of healthcare and aiding in public safety. Together with our local partners, we deployed mobile broadband technologies that enabled point-of-care devices to provide access to information, help lower costs, facilitate remote care and increase efficiency. We also closely collaborated with our partners to provide high-quality educational content to Chinese families and children through mobile devices.

Where Wireless Reach and its partners are working to bring the benefits of mobile technology to communities throughout China from 2006 to 2014.

To date, the Wireless Reach initiative has directly or indirectly benefitted over

850,000 people in China.

WIRELESS REACH PROJECTS AND LOCATIONS

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CHAPTER 3

2014 Wireless Reach Programs in China

Women comprise over 44 percent of the workforce in the manufacturing sector. Many are 18- to 25-year-old migrants who moved from rural areas to cities for jobs, and often lack access to healthcare information. Women workers in many regions of the world are often reluctant to ask questions in public settings about reproductive health, contraceptives and family planning.

The Mobilizing HERhealth program uses a mobile application for mobile broadband enabled smartphones and educational health content to empower female factory workers in China to better manage and improve their health. This project is based on BSR’s HERhealth initiative, which provides women working in global supply chains with comprehensive training in a range of wellness topics, including reproductive health and nutrition. The first phase of the program evaluated the mobile application in one factory, reaching approximately 150 women between the ages of 18 and 25.

The Mobilizing HERhealth Program

Transformative Technology

• A user-friendly, HTML5-based mobile application was developed for mobile broadband enabled mobile devices to provide peer health educators and the women they interact with, access to reproductive health training and other interactive health-related content.

• Mobile content was developed based on the curriculum and educational materials for the HERhealth program.

• The mobile application includes supporting functionality for the HERproject coordinator or peer health educators, such as a training calendar, push notifications and online quizzes. It features a social networking functionality for peer health educators and workers to easily share their ideas and experiences. Factory coordinators and management can also use the app to schedule other activities in the factory or conduct short surveys.

Ongoing Impact

• Research has shown that the potential return on investment for existing HERhealth programs is as high as $4 for every $1 invested in the project.

• Participating factories have seen health-related absenteeism reduced and related benefits.

This project aligns with China’s 12th Five-Year-Plan, which prioritizes developing affordable, accessible healthcare for the entire population.

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CHAPTER 3

There are 108.2 million children under the age of seven in China. Natural disasters can affect children and their families in a myriad of ways. Yet, limited resources exist to help families prepare for potential emergencies. Safety awareness in particular is low in rural parts of China, particularly in areas that are underdeveloped. Research shows that every $1 spent on preparing for natural disasters could save $7 in humanitarian disaster response.

In order to address this challenge, Sesame Workshop (the producers behind Sesame Street); Qualcomm Wireless Reach; China Telecom Corporation Limited, Guizhou Branch; and the China Youth Development Foundation collaborated to design, implement, and scale compelling mobile broadband enabled interactive resources. The project features Sesame Street characters on a mobile website and application to create an engaging experience for young children to learn about emergency preparedness. The project emphasizes the importance of knowing your name and address, having an emergency plan, packing an emergency kit and learning about people and places within your community that can help in an emergency.

A four-week pilot study was implemented in Guizhou Province to evaluate the project’s effectiveness. Thirty-one families with children between the ages of three and six each received a mobile broadband smartphone pre-loaded with mobile tools, wireless connectivity, a data plan and an orientation on the technology. As of June 2013, these 3G-enabled tools were available free for download, extending these important safety tools to children and their families living throughout China.

Let’s Get Ready! Project: Helping Families with Young Children Learn about Emergency Preparedness

Transformative Technology

• An HTML5 website for mobile platforms accessible to all 3G-enabled smartphones provides engaging videos, interactive games and activities, including:

• A “chalkboard” allowing children to practice writing their names and addresses, dial their home phone numbers and draw pictures of their homes or family meeting places.

• A scavenger hunt reminding children of the items that go into an emergency kit and the people and places that may be helpful in an emergency.

• An Android application providing families a more personalized experience, featuring:

• A photo scavenger hunt for taking pictures of items that go into an emergency kit and the people and places that may be helpful in an emergency.

• A photo quiz that assesses a child’s knowledge of emergency preparation.

• An alarm function for scheduling an emergency drill.

Impact

• Parents who participated in the one-on-one interviews said the program showed a new educational approach to the topic and expressed appreciation for specific activities around emergency preparedness, such as putting together an emergency kit as a family and remembering full names and telephone numbers.

• Parents liked the mobility of the program, which enabled them to interact with their children in many locations other than at home, such as at a bus stop, a relatives’ home, school and the police station.

• Most parents would recommend the program to other parents. In fact, during the study period, about one quarter of them spontaneously recommended the “Let’s Get Ready!” program to parents of their child’s classmates, family relatives, friends and colleagues.

In 2015, we plan to launch the Sesame Street Mobile Road Safety First! Program under the Let's Get Ready! initiative to use mobile content and mobile broadband connectivity to teach preschool-age children how to travel safely by car, bicycle, bus, train and foot.

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CHAPTER 3

Cardiovascular diseases (CVDs) are currently the leading cause of death in China, responsible for about 2.6 million deaths annually. By 2020, this figure is projected to increase to 4 million deaths per year. In fact, China will lose $558 billion between 2005 and 2015 in national income due to heart disease, stroke and diabetes alone. The main challenge is efficiently and effectively reaching patients with CVD. Luo Zhengxiang, head of the Guangdong Cardiovascular Disease Research Institute, notes, “CVDs have spread to many rural areas in most parts of China, where medical care is less adequate than what can be found in the cities.”

Qualcomm Wireless Reach, in collaboration with Life Care Networks and the Community Health Association of China, deployed mobile broadband enabled heart monitoring mobile phones for resource-scarce, community health clinics located in Shandong, Anhui and Sichuan provinces and Chongqing municipality, for the prevention and treatment of people’s cardiovascular diseases. The system has three electrocardiograph sensors built into a mobile phone that is placed on a patient's chest for approximately 60 seconds in order for their heart data to be collected and delivered via 3G in real-time to a cardiac specialist at Life Care Networks’ Call Center in Beijing. The call center provides 24/7 service. For simple cases, the physicians at the call center can provide diagnosis, consultation and treatment remotely. For more complex cases, patients are screened by the system and then referred to specialized hospitals for further testing or treatment.

Wireless Heart Health: Using 3G to Assist Underserved Patients with Cardiovascular Disease

Transformative Technology

• Mobile broadband enabled cardiovascular-sensing smartphones and an application that sends patient heart data over China Telecom’s 3G EV-DO network for analysis at Life Care Networks’ Call Center in Beijing.

• A web-based electronic medical record software maintains a historical record of patient cardiovascular monitoring data and patient information.

• 3G wireless workstations located within the clinics include computer terminals with access to the Internet, which provides healthcare workers with instant access to electronic patient records.

Impact

• Since the project’s implementation in 2011, more than 600 doctors have used this system and more than 160,000 patients have benefited from it.

• The 24-hour Life Care Networks’ Call Center is staffed by over 60 physicians and provides round-the-clock services, including remote monitoring, diagnosis, clinician consultation and treatment.

By utilizing 3G wireless technology to collect heart data from underserved patients and send it to specialists for immediate consultation, this project successfully overcomes some of the barriers to screening for and treating cardiovascular diseases.

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CHAPTER 3

Amblyopia, sometimes called “lazy eye,” is the most common cause of vision impairment in childhood. Despite a high number of children with amblyopia in China, clinicians in rural areas often lack knowledge about how to properly diagnose and treat this disease. Additionally, financial hardship prevents many children in remote areas from receiving treatment for amblyopia, increasing their risk of lifelong disability. Amblyopia, if detected early, is treatable. If not, it can cause lifelong disability.

Wireless Reach partnered with Xi’an Kingtone Information Technology and the China Children and Teenagers’ Fund in 2009, deploying the 3G Mobile Medicine application to enable improved patient care in resource-scarce, rural communities. Building on this knowledge, the Mobile Vision Project utilizes a 3G-enabled mobile application to assist doctors in the screening and treatment of children with amblyopia. A custom mobile application that enables data collection and analysis and helps with patient screening and diagnosis, was designed for implementation at Hengshui City Maternal and Child Care Service Center (MCCSC) and other public health centers. These organizations serve approximately 400,000 children and teenagers up to the age of 14.

Mobile Vision Project: Preventing Lifelong Vision Disabilities for Children

Transformative Technology

• Eye care professionals received 3G-enabled smartphones, laptop computers, PCs and 3G connectivity, allowing them to access the system anytime, anywhere.

• The system creates an electronic medical record that enables healthcare workers to locate and record a patient’s medical chart via computer or mobile device.

• A searchable, online ophthalmology databank contains a comprehensive collection of the latest eye care information.

• A system via web portal or mobile application for doctors to keep a record of basic data and submit reports to county-level MCCSCs.

Impact

One year after it was implemented, the Mobile Vision Project showed great promise:

• 50 township-level clinics regularly used the system in their daily medical practice and an additional 71 clinics had registered to roll out the system.

• Of the 1,144 eye exams conducted, 684 patients were identified as having suspected cases of amblyopia.

Data collected in October 2013 demonstrates the growing impact of the project’s mobile technology on communities:

• 101 township-level clinics regularly use the system in their daily medical practice.

• Of 23,286 eye exams conducted to date, 3,073 patients were identified as having suspected cases of amblyopia.

The system allows better collection and analysis of patient health information, improves efficiency and timeliness in data exchange between health workers at local, city and county levels, and improves screening and treatment.

• Anytime, anywhere access to the ophthalmology databank assists in the rapid spread of knowledge about amblyopia and other common eye diseases among local eye doctors.

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The philanthropic endeavors of the Qualcomm Foundation and Qualcomm Incorporated develop and strengthen communities worldwide. We invest our human and financial resources in inspirational, innovative programs that serve diverse populations. We aim to help create educated, healthy, sustainable, culturally vibrant communities. We also support employees’ commitments to our communities through various programs, including our volunteerism initiatives.

At Qualcomm, our goal is to expand philanthropic support in alignment with Qualcomm’s growth and the priorities of those in need. Globally, the Qualcomm Foundation and Qualcomm Incorporated have granted over $240 million in combined donations since 2000.

Qualcomm Incorporated and the Qualcomm Foundation have provided philanthropic support to various projects across China over the past several years. They have donated millions of dollars to charitable organizations and causes in China including for education, science, healthcare and children. Our employees have also donated many hours of volunteer time. The following are some highlights of our recent philanthropic and volunteerism efforts in China:

Philanthropy

CHAPTER 3

A PC classroom at Shiyan Elementary School in

Mingshan district, one of the 20 schools

in Ya’an City of Sichuan province assigned as

recipients of Qualcomm’s donation.

• This year, we announced a donation of $325,000 to assist earthquake relief efforts in China’s Yunnan Province. Qualcomm has committed the funds to Charities Aid Foundation of America (CAF America), which has made a grant from their fund to the China Youth Development Foundation (CYDF) at the Company’s suggestion. The funds are expected to be implemented this coming fiscal year.

• In 2013, we donated $500,000 to 20 primary schools in Ya’an, Sichuan Province. We again committed these funds to the CAF America that made the grant of the funds to the CYDF. During FY 2014, these funds were employed to construct a PC classroom at each of the schools as well as to set up other equipment (Internet access equipment, desks, chairs, etc.). Moreover, the funds were also used to provide subsidies to aid students experiencing economic hardship as a result of the earthquake.

• In 2014, Qualcomm also committed funds to CAF America, which has made a grant of their funds to support the Shanghai United Foundation to support World of Art Brut Culture’s (WABC) Music Therapy workshops at various Shanghai locations for students with special needs.

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CHAPTER 3

VolunteerismAt Qualcomm, we have a passion for pitching in. People who work at Qualcomm are the kind of people who want to change the world. Across our company, employees contribute to the causes they care about with both their time and money. The name of our employee volunteer program sums up our spirit of giving: QCares. Through QCares, our employees around the world are connected to local volunteer opportunities. It is also one component of how we endeavor to instill a culture of sustainability within our company.

As part of our global effort to strengthen underserved communities, our employees in China are giving both time and money to local nonprofit organizations—particularly to schools and orphanages serving children with disabilities and special needs. The QCares goal is to increase employee volunteerism through innovative programs with local nonprofit organizations. With this in mind, we held our fifth annual companywide volunteerism month, QCares Experience, in 33 Qualcomm locations worldwide. More than 2,200 employees volunteered over 8,500 hours at participating nonprofit organizations. Locally, we held additional QCares volunteer activities throughout the year:

QCares partnered with more than

100 nonprofit projects in 33 locations, globally.

• Qualcomm volunteers visited the Shenzhen Welfare Center, partnering with Half the Sky Foundation, which aims to ensure every orphaned child has a caring adult in his or her life. Volunteers played together with the babies and toddlers and shared a meal. The volunteers also visited the welfare center’s Infant Nurture Program, the Little Sister’s Preschool Program and a nearby foster family during the day.

• During the “Walk for Love” activity, 65 Qualcomm volunteers—33 Qualcomm employees with their families and friends—walked 3k/5k/10k loops in the Olympic Forest Park in Beijing with Share the Care, a local organization raising funds and awareness for migrant children and migrant schools in China.

• Qualcomm volunteers took part in Shanghai’s “Art Cures Everything” program hosted by the World of Art Brut Culture (WABC), a Shanghai philanthropic organization aiming to eliminate social prejudices against special needs individuals by offering them a stage to display their artistic talents. Volunteers helped the children draw on canvases to show their feelings and joined them in dance therapy, which is considered a helpful communication tool.

• Our QCares volunteers visited the Dandelion Library for migrant workers’ children in Shanghai. A team of 20 volunteers and 20 children explored storybooks together, learned about the experiences of migrant children and participated in a group library design activity.

In

2014

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CHAPTER 3

Employee DevelopmentOur goal at Qualcomm is to provide a safe and healthy work environment, where diversity is embraced and various opportunities for training, growth and advancement are strongly encouraged for all employees. It is through the dedicated efforts of our employees that we are able to bring transformative technologies to people all around the world.

In China, we strive to be a great employer for talented people seeking to work in an industry-leading environment. With this in mind, we support our employees in their professional lives as well as their personal lives. Sometimes that means providing them with new skills or a fresh challenge. Other times it means offering opportunities and resources for work-life balance. Our career development services, along with our rich work-life offerings, help make Qualcomm a nurturing and satisfying place to work.

In 2014, we conducted 130,000 professional employee trainings globally. These trainings included presentation skills, career development training, management skills training and technical training designed for engineers. In addition, we also provided ethics training around the “Qualcomm Way,” to maintain our strong culture of integrity.

Our Learning Center is a professional development resource our employees use to keep on top of fast-evolving wireless industry trends. Through the Learning Center, employees worldwide can access resources to develop their skills and knowledge. Each year, in person and online, thousands take advantage of engineering trainings, leadership development courses, peer-to-peer education, the technical and professional library and more. Employees get the knowledge and support they need to excel in their jobs and advance their careers; together, our company and China’s workforce get stronger in the process.

Qualcomm for Work-Life Balance

We recognize that when employees are happy, they are more productive and fulfilled. And integral to their job satisfaction is the ability to balance the demands of work, family and leisure time. With this in mind, we have provided opportunities and resources to employees across our offices to balance work with the rest of life. We currently focus in two areas:

• Social – Opportunities to socialize with fellow employees through clubs and events

• Personal – Resources to help manage personal and family obligations

Our Global Employee Health Services (GEHS) team promotes health and wellness among our workforce through a variety of programs, including semi-annual health awareness campaigns, such as World Health Day, preventive health screenings and health-awareness challenges incorporating innovative technologies. Encouraging employees to make small, positive changes that add up to measureable and sustainable health gains over time, GEHS’s programs and services focus on the five core elements of health: eating well, being active, sleeping well, taking time to reflect and practicing prevention. GEHS works with other Qualcomm departments, best-in-class vendors, academic institutions and world-renowned health organizations to offer trusted, relevant services to our employees. Qualcomm offices across China all participated in this program in 2014.

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CHAPTER 3

Our Story: Innovative Technology for Heart Health

Langmaoshan is a rural region outside Jinan city, Shandong province, where Dr. Ren Nianbao has worked at his private clinic for nearly 23 years. Every day, he receives hundreds of patients, with about 17 to 20 percent suffering from a cardiovascular disease (CVD). He says that CVDs are actually on the rise in many of the areas he serves mainly “because of bad habits, such as eating a lot of high-calorie foods.”

Cardiovascular diseases are some of the hardest diseases to diagnose, especially when patients are not showing common symptoms. The main challenges facing CVD care in rural areas are the difficulties in reaching patients, inadequate medical facilities and sometimes the limited capacity and capabilities of doctors. At Dr. Ren’s clinic, he and his staff were using a conventional 12-lead ECG machine to screen for CVDs. He said that the huge and complex machine made it especially difficult to screen patients with a potential risk of acute CVD and who may need immediate help.

To help people like Dr. Ren and his patients, Qualcomm Wireless Reach in collaboration with Life Care Networks deployed mobile broadband enabled mobile phones with customized heart monitoring capabilities in resource-scarce, community health clinics around Shandong and in 23 other provinces in China. “Patients now have access to quick and accurate screenings. It’s also convenient that we can check a patient’s medical history on the mobile-centric digital tracking system and get examination results from the monitoring center in one to two minutes.” Dr. Ren’s clinic uses the phone to collect more accurate data and receive expert consultation from Life Care Networks’ Call Center in Beijing 310 miles away.

Dr. Ren told us he now uses the device 30 to 50 times a day, as more and more people are coming to him for health consultations. He was also very excited to report that some of his patients were now correcting their own bad habits, based on greater understanding of their health thanks to the program. These proactive measures will help patients prevent their diseases from worsening. “With these efficient and trustworthy devices, many patients are now willing to get regular health examinations—increasing their knowledge and understanding of how to develop healthy lifestyles.”

There are over 600 doctors and staff in approximately 600 hospitals, community health centers and primary clinics like Dr. Ren’s that are utilizing 3G cardiovascular-sensing smartphones and electronic health records software provided by Qualcomm’s Wireless Heart Health initiative. Since the program’s rollout, Life Care Networks’ Call Center cardiovascular disease specialists have given expert feedback to local doctors for over 130,000 rural patient ECG screenings, of which 20 percent pointed to potential CVD conditions requiring further medical attention. Providing patients with unprecedented access to expert opinions right in their own backyard is just one way we are transforming lives across China, one mobile connection at a time.

Ren NianbaoDoctor, Jinan city, Shandong province

600+doctors

600hospitals

130,000ECG screenings

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At Qualcomm, we are proud of the work we have accomplished in tandem with our Chinese partners and are looking forward to contributing to China’s

further sustainable development. Together with China’s innovators and creative thinkers, we are developing mobile solutions that improve the technologies we rely on in our daily lives. We are inspired by the ubiquitous spirit in China that views technological innovation as the key for sustainable progress now and in the future. This spirit resonates with our core company values, as we continue to build the elements of our sustainability strategy, including environmental, social and corporate governance. By nurturing companies, entrepreneurs, researchers and students, we are committed to encouraging a vibrant mobile ecosystem, integral to China’s sustainable development.

Closing Remarks

What is on the horizon for mobile technologies in China? We believe there are boundless possibilities for mobile to empower people, enhance quality of life and improve communications for people in China and around the globe. Across China, the rapidly evolving innovation ecosystem is ushering in a new era of communications that has begun affecting how we do business, how we learn and how we prosper together.

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© 2015 Qualcomm Incorporated. All Rights Reserved.

Qualcomm, Snapdragon, Qualcomm RF360 and Wireless Reach are trademarks of Qualcomm Incorporated, registered in the United States and other countries. Qualcomm Halo and ImpaQt are trademarks of Qualcomm Incorporated. Other products and brand names may be trademarks or registered trademarks of their respective owners.