Qualcomm and the government of Guizhou province signed a strategic cooperation agreement to establish a joint venture.
The new joint venture will focus on the design, development, and sales of server chips used in China. With initial registered capital of CNY1.85 billion, which is about USD280 million, the Guizhou government will hold a 55% stake in the JV, while Qualcomm will hold the remaining 45%.
Registered in Guian New Area, Guizhou, the JV will have an operating branch in Beijing. According to the agreement signed by the two parties, Qualcomm will authorize its server chip proprietary technologies to the JV along with design and technical support.
Apart from the JV, Qualcomm will set up an investment company in Guizhou, which will focus on the company's future investments in China.
Qualcomm said that the JV marks Qualcomm's newest investment in China. Prior to this, the company teamed with Semiconductor Manufacturing International Corporation for smartphone chip manufacturing; invested in joint venture SMIC Advanced Technology Research & Development (Shanghai) Corporation; and established a USD150 million venture capital fund in China.