Qualcomm is enhancing its relationship with Chinese businesses by launching a new unit to help Chinese smartphone manufacturers sell products in overseas markets.
About half of Qualcomm's revenue is reportedly from Chinese clients; however, the company still faces a series of challenges in the country. Prior to this, Qualcomm was punished for having monopoly in China. At the same time, the Chinese government is trying to lower their dependency on foreign chip manufacturers and other technology enterprises. To cope with this situation, Qualcomm hopes to prove their value to Chinese enterprises with the new seemingly-altruistic move.
According to Steve Mollenkopf, chief executive officer of Qualcomm, after the company paid their penalty in China, more and more Chinese clients showed their willingness to sign licensing agreements. As industrial giants like Apple and Samsung started using self-designed chips, revenue from Chinese smartphone makers became more important to Qualcomm. With the new move, Qualcomm wants to attract Chinese smartphone makers who aim to develop on the global stage, including Xiaomi and Huawei.
Jeff Lorbeck, vice president of Qualcomm China, told local Chinese media that the company previously opened a global office in Shenzhen that aimed to help Chinese smartphone makers explore the global marketplace. He said they are currently focusing on assisting Chinese clients to expand into overseas markets.