Germany's Infineon Technologies AG has signed a letter of intent for a framework purchase agreement amounting to USD68 million with China's Huawei Technologies.
This deal, as an important part of the recent European procurement tour of the Chinese business delegation, is intended to supply end-to-end chip solutions to Huawei's wireline and wireless communication systems. Infineon will provide semiconductor solutions for Huawei's various products. As one of the major deals signed on this tour, Huawei Technologies will purchase semiconductor solutions from Infineon worth USD68 million in 2009. These products and technologies will enable Huawei to deliver advanced and sophisticated systems to the telecom markets. Shipment of the first products has already started.
Despite the global financial crisis, China supports the European enterprises with its strong purchasing power. In late February, a business delegation of about 200 Chinese entrepreneurs, led by Commerce Minister Chen Deming, made a procurement tour to Germany, Switzerland, Spain and Britain. In Germany alone, this delegation signed a total of 37 procurement deals worth around USD14 billion with local companies, focusing on electronics, automotive, machinery and healthcare.