Qualcomm has signed a strategic cooperation agreement with China’s Guizhou Province and unveiled a joint venture, the Guizhou Huaxintong Semi-Conductor Technology, which will focus on the design, development and sale of server chips.
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With the partnership of Qualcomm and the new entity’s engineers, Guizhou Huaxintong Semi-Conductor Technology would be going head to head with Intel in the arena of server chips, which Intel now dominates, according to Tech Times.
In addition, the chip maker plans to establish an investment firm in Guizhou for future Chinese investments.
The new company will be owned by both Qualcomm and Chinese officials from the Government of Guizhou Province.
The joint venture will be registered in Guian New Area, Guizhou with Beijing hosting operations.
Qualcomm (NASDAQ:QCOM) is looking forward to grow outside its core smartphone chip market, where it is experiencing declining sales and rising competition.
Qualcomm took the wraps off an ARM-powered server CPU last October. Ltd has an investment capital of $280 million. Qualcomm will license its server chip technology and provide research and development processes to the joint venture.
It added in November that it would co-develop the technology with local Chinese companies. China has demonstrated interest in developing its own semiconductor industry.
Derek Aberle, president of Qualcomm Ihe joint venture, cooperation agreement and formation of an investment company are important steps for Qualcomm as it deepens its cooperation and investment in China. In February previous year it said it had settled with China’s National Development and Reform Commission in connection with the agency’s investigation of Qualcomm under the country’s anti-monopoly law, including by agreeing to pay a fine of about $975 million to the NDRC.
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The company has also had problems in China. Qualcomm Incorporated includes Qualcomms licensing business, QTL, and the vast majority of its patent portfolio.
