US chipmaker Qualcomm to pay nearly $1bn to Chinese regulators in anti-trust probe

US chipmaker Qualcomm has agreed to pay $975m to Chinese authorities to terminate a 14 month anti-trust investigation into its patent licensing practices.

The fine will require the company to lower royalty rates on patents used in China's mobile phone market and could help Chinese smartphone makers Xiaomi and Huawei.

The fine is the largest in China's corporate history.

On Monday Qualcomm said it would not contest the ruling that it violated China's anti-monopoly law.

"Although Qualcomm is disappointed with the results of the investigation, it is pleased that the NDRC (National Development and Reform Commission) has reviewed and approved the company's rectification plan," the tech giant said in a statement on Monday, quoted by BBC.

The firm will now charge royalties based on 65% of the selling price of phones in China, instead of on the entire price.

China's expanding high-speed 4G network is spurring demand in the world's largest smartphone market, where Qualcomm is a key player. The chip giant made about half its global revenue of $26.5bn in China in its last fiscal year.

The news pushed the company's New York listed shares up 2.8% in after-hours trading. The chipmaker also increased its profit and revenue forecast for the current fiscal year.

Chief executive Steve Mollenkopf said he was pleased the resolution had removed "uncertainty" surroundings its business in China.

"We will now focus our full attention and resources on supporting our customers and partners in China and pursuing the many opportunities ahead," he said.

Qualcomm is the biggest supplier of chips used in smartphones.