Qualcomm Incorporated (Nasdaq: QCOM) and China TechFaith Wireless Communication Technology Limited (TechFaith) (Nasdaq: CNTF) today, at a press conference in Shanghai, announced plans to found a new company to focus on the development of application software for wireless devices. The new company, TechFaith Software China Limited (TechSoft), which will be based in Beijing and Hangzhou, China, will be funded by Qualcomm and TechFaith. Subject to the satisfaction of customary closing conditions, as well as the achievement of performance milestones, TechSoft will receive a total investment of cash and in-kind contributions valued at up to US$35 million from Qualcomm and TechFaith.
This investment follows Qualcomm's announcement in June 2003 that it plans to invest up to US$100 million in early- to mid-stage Chinese companies engaged in the development and commercialization of CDMA-based products, applications and services. TechFaith is one example of Qualcomm's investments since June 2003. TechFaith became Qualcomm's first independent handset design house partner in China, following an investment announced in April 2004.
“This collaboration reinforces the successful relationship we have built with Qualcomm,” said Dong Defu, chairman and chief executive officer of TechFaith. “TechFaith has always striven to shorten manufacturers' time to market and to lower development costs, thereby helping to drive the growth of wireless technology in China and around the world. Our further collaboration with Qualcomm to establish TechSoft reinforces our international focus with the goal of providing continually improved mobile handset solutions.”
“Qualcomm works closely with numerous industry leaders, and is firmly committed to investing in the Chinese wireless industry as an area of tremendous growth and opportunity to serve global wireless markets,” said Dr. Sanjay K. Jha, president of Qualcomm CDMA Technologies. “Our common goals with TechFaith have led the two companies to establish TechSoft, demonstrating Qualcomm's commitment to driving the advancement of 3G CDMA around the world.”
Initially focusing on 3G CDMA mobile handsets, TechSoft will operate as an independent entity.
TechFaith (Nasdaq: CNTF) is one of the largest handset application software and solution providers based in China. With technology capabilities in developing user interface software on GSM/GPRS, CDMA2000/EV-DO, WCDMA (UMTS)/HSDPA and TD-SCDMA wireless communications technologies, TechFaith is able to provide user interface software packages that fulfill the specifications of major global operators, including those using the BREW solution for offering downloadable content. TechFaith also is capable of providing total solutions for handsets' upper-layer software. In addition, TechFaith has the capability to develop Smart Phones and Smart Phone software based on open operating systems including, Linux and Windows Mobile®. TechFaith is able to implement high-end Smart Phones integrating Bluetooth, Wi-Fi and high-mega-pixel cameras, based on different communication technologies according to the specific requirements of customers. Based on the above technology and software capabilities, TechFaith provides a full range of services in handset design to satisfy different customers' needs. TechFaith's services include (i) handset design solutions; (ii) turnkey software and design solutions on chipsets; (iii) application software; and (iv) wireless module and wireless application products. For more information, visit www.techfaithwireless.com.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2005 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 25, 2005, and most recent Form 10-Q.