Qualcomm showcased its continued dedication to the Chinese market with the announcement of a strategic cooperation agreement and joint venture formation with the People’s Government of Guizhou Province. The agreement and joint venture will feature Qualcomm® server chip technology and R&D processes to potentially serve a growing appetite for next generation technology—specifically linked to big data—in China.
As announced Sunday, a Qualcomm subsidiary will serve as a 45 percent owner of this venture, which will design and sell world-class server chipsets in China. The agreement also includes the establishment of an investment company in Guizhou that will serve as a vehicle for future investments in China. Both parties put up $280 million as part of the initial agreement.
"This server technology joint venture is a win-win scenario for Qualcomm and our Guizhou partner and will yield mutual benefits for both sides as we together pursue a very large data center opportunity in China," said Anand Chandrasekher, senior vice president and general manager, Qualcomm Datacenter Group, Qualcomm Technologies, Inc.
Considering the proliferation of personal devices in China, as well as an increased focus on next-generation technologies, China continues to be a major focus for Qualcomm. The company announced licensing deals with Haier, QiKu and Tianyu last year, and announced the formation of a $150 million China Investment Fund as well as collaboration with SMIC to manufacture Qualcomm Snapdragon processors in 2014.