Qualcomm unveils $280 million joint venture with Chinese province
NEW YORK Qualcomm Inc and the provincial government of Guizhou in southwest China unveiled on Sunday a $280 million joint venture for the design, development and sale of advanced server technology, as the U.S. chipmaker deepens its Chinese relations.Qualcomm officials in Beijing signed a strategic cooperation agreement with the government of Guizhou province and announced the Guizhou Huaxintong Semi-Conductor Technology Co Ltd, a joint venture with initial capital of 1.85 billion renminbi.Qualcomm also will establish an investment company in Guizhou that will serve as a vehicle for future investments in China, the company and the provincial government said in a statement.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, said Derek Aberle, president of Qualcomm Inc.
Aberle said that in addition to its capital investment, Qualcomm was licensing its server technology to the joint venture, assisting with research and development and would supply expertise to implement the project.
"This underscores our commitment as a strategic partner in China," Aberle said in the statement.
(Reporting by Herbert Lash; Editing by Peter Cooney)