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. The new joint venture will start life with CNY 1.85 billion (around USD 280 million), 45 percent owned by Qualcomm and 55 percent by the Guizhou provincial government.
As part of the cooperation deal, Qualcomm also will establish an investment company in Guizhou that will serve as a vehicle for future investments in China. The overarching agreement establishes a long-term commitment between the two parties to work closely together to identify and pursue business opportunities in the province. Qualcomm said it will also be licensing its server technology to the joint venture and assist with R&D process and implementation expertise.
The new joint venture will be registered in Guian New Area, Guizhou, with operations in Beijing.