Chongqing Chongyou Information Technology has signed a contract with Chongqing Venture Capital Company and Chongqing Yufu Assets Management Company to jointly invest CNY320 million to set up a joint venture named Chongqing CYIT Communication Technology Company.

Chongyou Information Technology participates in the joint venture with intangible assets, including TD-SCDMA technologies and intellectual property rights, that have a total value of CNY160 million and the company holds a 50% stake, while Chongqing Venture Capital and Yufu Assets Management invest CNY100 million and CNY60 million, respectively, hold the other 50% stake.

According to Chongyou, to intensively promote the development of the new-generation broadband mobile communication industry, the joint venture will focus on the research and industrialization of core chips and solutions for telecommunications terminals. It will mainly supply advanced core technologies of TD-SCDMA terminals, terminal solutions and technical services to designers and manufacturers of telecommunications terminals such as mobile phones. At the same time, the company will actively track the development of core technologies and market of TD-SCDMA terminals, but it will not directly participate in the manufacturing or sales of these terminals.

After the founding of Chongqing CYIT Communication Technology, it will try to expand the range of TD-SCDMA mobile phone chips and enhance the functions of its products, so as to offer a diversified product portfolio and leading terminal products solutions to customers. In addition, the company plans to establish a strategic partnership with independent mobile phone designers and manufacturers to enlarge its market share.