The new company, TechFaith Software China Limited (TechSoft), which will be based in Beijing and Hangzhou, China, will be funded by Qualcomm and TechFaith.
Subject to the satisfaction of customary closing conditions, as well as the achievement of performance milestones, TechSoft will receive a total investment of cash and in-kind contributions valued at up to US$35 million from Qualcomm and TechFaith.
This investment follows Qualcomm's announcement in June 2003 that it plans to invest up to US$100 million in early- to mid-stage Chinese companies engaged in the development and commercialization of CDMA-based products, applications and services. TechFaith is one example of Qualcomm's investments since June 2003. TechFaith became Qualcomm's first independent handset design house partner in China, following an investment announced in April 2004.
"This collaboration reinforces the successful relationship we have built with Qualcomm," said Dong Defu, chairman and chief executive officer of TechFaith. "TechFaith has always striven to shorten manufacturers' time to market and to lower development costs, thereby helping to drive the growth of wireless technology in China and around the world. Our further collaboration with Qualcomm to establish TechSoft reinforces our international focus with the goal of providing continually improved mobile handset solutions."
"Qualcomm works closely with numerous industry leaders, and is firmly committed to investing in the Chinese wireless industry as an area of tremendous growth and opportunity to serve global wireless markets," said Dr. Sanjay K. Jha, president of Qualcomm CDMA Technologies. "Our common goals with TechFaith have led the two companies to establish TechSoft, demonstrating Qualcomm's commitment to driving the advancement of 3G CDMA around the world."
Initially focusing on 3G CDMA mobile handsets, TechSoft will operate as an independent entity.