Qualcomm said Tuesday it will begin a specialty auction to repurchase up to $10 billion of its shares, a move to salvage shareholder value after a failed merger with Dutch semiconductor firm NXP.
Shares of Qualcomm closed Tuesday trading up 3.3 percent at $64.09 per share.
The company announced the share repurchase will be a "modified Dutch auction," a process that allows shareholders to declare the number of shares they sell and the price at which they sell them.
The buyback comes after Qualcomm announced plans during its third-quarter earnings call to repurchase as much as $30 billion in stock this fiscal year, which ends Sept. 30. The repurchase program, previously announced in May as targeting $10 billion in repurchasing, comes after Qualcomm's $44 billlion bid to acquire NXP fell apart due to regulatory roadblocks.
Qualcomm first proposed the purchase of rival NXP in October 2016 and received eight of nine international approvals needed to close the deal. Its bid was formally called off last week when the company's self-imposed deadline expired before receiving approval from Chinese regulators.
Qualcomm CEO Steve Mollenkopf told CNBC last week that the deal "got caught up" in the ongoing trade war between the U.S. and China, and that the company was committed to protecting shareholder value.