Qualcomm announces chipset joint venture in China

Chipset maker Qualcomm today announced its joint venture in China to develop and sell chipset in the local market.

Qualcomm will hold 45 percent stake, while Guizhou provincial government will have the balance 55 percent stake in Guizhou Huaxintong Semi-Conductor Technology which will have a registered capital of $280 million.

As part of the deal, Qualcomm will license its server chip technology and provide R&D processes to the joint venture to support the commercial viability.

The joint venture will focus on the development and sale of advanced server chipset technology in China, the second largest country in the world for server technology sales.

The joint venture is part of the strategy of Qualcomm to make an investment in China. Earlier, Qualcomm faced more than $1 billion penalty due to its business practices.

Derek Aberle, president of Qualcomm, said: “We are not only providing investment capital, but we also are licensing our server technology to the joint venture and assisting with R&D process and implementation expertise; this underscores our commitment as a strategic partner in China.”

Qualcomm said Guian New Area in Guizhou is an important base for the development of the big data industry and will include a green datacenter cluster of more than 2.5 million servers for companies including China Telecom, China Unicom and China Mobile.

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