Qualcomm names Steve Mollenkopf next CEO, ends Microsoft talk

Qualcomm Inc., a San Diego maker of chips for mobile phones, promoted Chief Operating Officer Steve Mollenkopf to chief executive after he was reported to be a candidate for the top job at Microsoft Corp.

Mollenkopf, 44, will become CEO on March 4, Qualcomm said Friday. He will join the board and continue to serve as Qualcomm’s president. Paul Jacobs, 51, the current CEO, will become executive chairman.

The move marks the first time that the nearly 3-decade-old chip maker has picked a leader from outside the founding Jacobs family. Mollenkopf’s promotion rules him out as a replacement for Steve Ballmer as CEO at Microsoft, the world’s largest software maker. Microsoft’s board had been considering the Qualcomm executive as a candidate, people familiar with the matter said this week.

“This is the first time a Jacobs won’t be CEO at Qualcomm — that says a lot about Mollenkopf’s merits,” said Roger Entner, an analyst at Recon Analytics in Dedham, Mass. “He helped transform Qualcomm from simply a wireless chip supplier to a leading developer of processors for mobile devices.”

Qualcomm had been planning the management change for “a fairly long period of time,” and accelerated the plan, Jacobs said in an interview.

“Our executives are very talented, very sought-after,” Jacobs said. “By doing this, it ensures the continuity of the management team. I really wanted to make sure that our management team stuck around and focused on the job ahead, which is a huge opportunity for Qualcomm.”

He declined to comment on Microsoft. Jacobs, the son of Qualcomm co-founder Irwin Jacobs, said he will focus on pushing future growth projects at the company, initiatives that he hadn’t been able to devote time to while CEO.

“It’s a smooth transition. I’m staying around,” he said. “Steve’s the guy making the decisions.”

After joining Qualcomm in 1994 as an engineer, Mollenkopf rose through the ranks to become head of the chip business, QCT, in 2008. While leading the group, he bought chip maker Atheros in 2011 for $3.1 billion, Qualcomm’s largest acquisition. Mollenkopf became president and chief operating officer in November 2011.

“I’ve had a big piece of what’s going on,” Mollenkopf said. “The way we’re headed is the right way, and I’m happy to have the ability to contribute at a higher level.”

Qualcomm shares fell 15 cents to $72.58 on Friday. The shares are up 17% this year.