The move is being seen as a part of Qualcomm’s attempts to deepen involvement in China and perhaps avoid it being sued for anti-trust actions in the future.
Qualcomm officials in Beijing signed a strategic cooperation agreement with the government of Guizhou province and announced the Guizhou Huaxintong Semi-Conductor Technology, a joint venture with initial capital of 1.85 billion million.
Qualcomm also will establish an investment company in Guizhou that will provide future investments in China.
Derek Aberle, president of Qualcomm Ihe joint venture, cooperation agreement and formation of an investment company are important steps for Qualcomm as it deepens its cooperation and investment in China.
Aberle said that in addition to its capital investment, Qualcomm was licensing its server technology to the joint venture, assisting with research and development and would supply expertise to implement the project.
Licensing is a cruicial move for Qualcomm in China and was at the heart of the issues that the government had with the chipmaker.