Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced Qualcomm's participation in a $14 million round of venture capital financing in Techfaith Wireless Communication Technology Limited ("Techfaith Wireless"), an independent handset design house and China's leading mobile terminal design group. Techfaith Wireless will design handsets based on CDMA2000® technology, initially targeting the Chinese domestic market.
"The investment by Qualcomm demonstrates their confidence in our leadership role in handset design," said D. F. Dong, chairman and founder of Techfaith Wireless. "This investment from Qualcomm will enable us to continue leading in the Chinese market and strengthen our overall global presence."
"Qualcomm is pleased to have Techfaith Wireless become the first independent design house partner in China," said Jing Wang, senior vice president of Qualcomm and chairman of Qualcomm China. "Our investment in TechFaith Wireless underscores Qualcomm's commitment to supporting the growing CDMA mobile value chain in China and worldwide."
This investment follows Qualcomm's announcement in June 2003 that it plans to invest up to $100 million in early- to mid-stage Chinese companies engaged in the development and commercialization of CDMA-based products, applications and services. Qualcomm believes that venture investments in a variety of market segments in China will promote the continued adoption of CDMA worldwide.
Techfaith Wireless was established in July 2002. As the largest mobile handset design house in China, Techfaith Wireless has an experienced R&D team and management team who are familiar with the mobile handset industry and understand the needs and desires of the customers. Techfaith Wireless has launched dozens of mobile handsets to the markets. Techfaith Wireless consists of four independent operating design houses including Beijing Techfaith R&D Co., Ltd, Beijing Centel Telecommunication Co., Ltd., STEP Technologies (Beijing) Co., Ltd, Leadtech Communication Technology (Shanghai) Ltd, and a branch for industrial design and mechanical design of mobile handset. The Company has over 600 employees, of which 90% are technical and engineering staff.
Techfaith Wireless has innovative design solutions and international standard quality control on mobile handsets. Techfaith Wireless provides comparable products with advanced technology and low production cost to the telecommunication industry, and has become one of the most influential companies in the telecommunication industry in China.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 28, 2003, and most recent Form 10-Q.