Qualcomm (QCOM.US), one of the world's largest smartphone processor manufacturers, has announced plans to significantly increase returns to shareholders through a new $20 billion stock repurchase program and an increase in its quarterly cash dividend. According to a company statement, Qualcomm's board of directors has approved the new share repurchase authorization, which supplements a previously announced buyback plan from November 2024. Concurrently, the company declared a raise in its quarterly dividend, increasing it from $0.89 to $0.92 per share for dividends payable after March 26. On an annualized basis, the dividend will rise to $3.68 per share. Headquartered in San Diego, California, Qualcomm is a leading global mobile chip designer whose processors are widely used in smartphones and other mobile devices. The company has consistently returned cash to shareholders through buybacks and dividends in recent years, and this new repurchase initiative further underscores management's confidence in its cash flow and long-term business outlook. However, Qualcomm's near-term business prospects face certain challenges. Last month, the company issued relatively cautious revenue guidance, noting that the global shortage of memory chips is impacting production plans for some customers, particularly smartphone manufacturers in China. This situation could lead to a decline in smartphone shipments, thereby dampening demand for Qualcomm's chips. Against this backdrop, CEO Cristiano Amon is steering the company through a strategic transition aimed at reducing its reliance on the smartphone market. Qualcomm is actively expanding into new business areas, including automotive chips, personal computer processors, and data center-related chips. Despite these efforts, these emerging growth segments are not yet sufficient to fully offset the impact of the slowdown in its core mobile chip market. Boosted by the announcement of the share repurchase and dividend increase, Qualcomm's stock price rose more than 1.9% on Tuesday. Market analysts widely believe that large-scale buyback and dividend programs help bolster investor confidence and can provide support for the stock price in the short term.