Chinese telecom equipment maker ZTE has signed framework agreements with Qualcomm and Broadcom to buy wafers worth no less than USD5 billion from the two companies over the next few years.
According to ZTE's operating plan, the company has signed the wafer procurement framework agreement for 2012 to 2015 with Qualcomm, stating that it will purchase wafers with total value of no less than USD4 billion from Qualcomm. The Chinese company has also signed the wafer procurement framework agreement for 2012 to 2014 with Broadcom, stating that it will purchase wafers with total value of no less than USD1 billion from Broadcom.
ZTE signed a wafer procurement framework agreement for 2006 to 2007 with Qualcomm in June 2006. At that time, ZTE agreed to purchase wafer products with total value of about USD500 million from the U.S. company.
During the first three quarters of 2011, ZTE's mobile phone shipments reached 19.1 million units, ranking fourth worldwide with market share of 4.9%. Meanwhile, the company's sales of smartphones continued to increase and reached sales of 12 million units in 2011.