Semiconductor company Qualcomm is under pressure from activist investors to consider a break-up. The proposed break-up could boost the chip maker's stock in the short-run, but it will solve the company other problems. Those will be solved by innovation.

For a long time, Qualcomm has been a star performer on Wall Street. The company's revenues and earnings have been growing quickly. The company has been in the right business at the right time. The company is the leading maker of LTE chips. In addition, Qualcomm has some big customers like Apple and Samsung Electronics.

But, over the last one year, the company's Wall Street performance has stumbled. The company has lost more than 12% of its value, but still the telecommunications company has over $17 billion in cash and no debt. This could be the reason why activist investors have been forcing the company to consider a break-up.

According to reports, there has been slow-down in the company's growth. Three years ago, the company's growth was about 30%, while lately it was just 7.5%. The reason is competition from companies like Samsung, Intel and MediaTek. The companies have been using their own chips for their new phones. In addition, Qualcomm has been facing problem in China. Recently, the company was fined about one-billion dollars by the Chinese government.

Another big problem that the company has been facing is its failure to come up with the 'next big thing'. According to some experts, a break-up of the company could make things worse than better. It could also hurt the company's long-term performance on Wall Street.

As per the reports, the activist investors have been asking the company to consider spinoff its chip unit. They have also suggested the company to consider some other options to boost the company's falling stock price.