Qualcomm Inc signed a deal Sunday with China’s Guizhou provincial government to set up a US$280 million joint venture that will develop advanced server chipsets.
The joint venture, named Guizhou Huaxintong Semi-Conductor Technology Co. Ltd., will be 55 percent owned by the Guizhou government and 45 percent by a subsidiary of Qualcomm.
According to an announcement, Qualcomm will also establish an investment company in Guizhou that will serve as a vehicle for future investments in China, Reuters reported.
The joint venture, cooperation agreement and formation of an investment company are important steps for Qualcomm as it deepens its cooperation and investment in China, Qualcomm president Derek Aberle was quoted as saying.
In addition to its capital investment, Qualcomm will be licensing its server technology to the joint venture, assisting with research and development and in implementation of the project, he said.
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