Qualcomm Incorporated recently announced its participation in a $14 million round of venture capital financing in Techfaith Wireless Communication Technology Limited (Techfaith Wireless), an independent handset design house and one of China's mobile terminal design groups.
Techfaith Wireless will design handsets based on CDMA2000 technology, initially targeting the Chinese domestic market.
This investment follows Qualcomm's announcement in June 2003 that it plans to invest up to $100 million in early- to mid-stage Chinese companies engaged in the development and commercialization of CDMA-based products, applications and services. Qualcomm believes that venture investments in a variety of market segments in China will promote the continued adoption of CDMA worldwide.
In a related story, Qualcomm and Techfaith Wireless announced that they have entered into a CDMA modem card license agreement. Under the terms of the royalty-bearing agreement, Qualcomm has granted Techfaith Wireless a worldwide license under Qualcomm's CDMA technology and patents to develop, manufacture and sell cdmaOne and CDMA2000 1X/1xEV-DO modem card products for use in wireless data communication devices.
Techfaith Wireless was established in July 2002 and has launched dozens of mobile handsets to the markets. Techfaith Wireless consists of four independent operating design houses including Beijing Techfaith R&D Co., Ltd, Beijing Centel Telecommunication Co., Ltd., STEP Technologies (Beijing) Co., Ltd, Leadtech Communication Technology (Shanghai) Ltd, and a branch for industrial design and mechanical design of mobile handset. The Company has over 600 employees, of which 90% are technical and engineering staff.