The Wall street Journal has reported that the activist investor Jana Partners LLC has urged Qualcomm Inc. (QCOM) to consider a breakup and other options for boosting the giant chip maker's sagging stock price.

According to a quarterly letter to Jana investors, reviewed by The Wall Street Journal, Jana has asked Qualcomm to consider spinning off its chip unit from its patent-licensing business, which accounts for most of the company's profit. Fifteen years ago, Qualcomm itself proposed the same idea but later on called it off.

As per the New York hedge fund's letter, Jana has a share of worth over USD 2 billion in Qualcomm. The investor has also called on the company to cut costs, accelerate stock buybacks and make changes to its executive-pay structure, financial reporting and board of directors

A spokeswoman for Qualcomm has said that the company always welcomes feedback from shareholders. There have been private discussions between Jana executives and Qualcomm's management since late last year, one person familiar with the conversations told the paper. Jana has described the talks as constructive in the letter.

Recently, Qualcomm took steps to boost its stock price, including company's USD 15 billion share buyback announcement made last month.

Jana, in the letter, has mentioned that the buyback is a positive step but the company has to do more to capitalize on its strong position in the chip market.

According to the fund, Qualcomm's chip business is basically worthless at the company's present market value.

Since the beginning of this year, the shares of Qualcomm, which has a market capitalization of $114.08 billion, have shown a 7% decline.