Samsung teams with DoCoMo for mobile chip scrap

Samsung and DoCoMo are ganging up on Qualcomm in a bid to push it from its dominant position in the mobile chip business.

The pair, along with Fujitsu, NEC and Panasonic have founded a joint venture with an investment of around $390 million. DoCoMo is coming up with half the cash, according to the Nikkei newspaper.

Qualcomm is way out ahead with its mobile chips business for smartphone wireless and mobile gear. With the phone market booming Qualcomm has been doing rather well with its chips, accounting for around 80 percent of the market, and the others are not happy.

The joint venture is all but agreed, and will start operations in early 2012. It will have to develop, desig and flog the chips. It means that Samsung would not have to rely on Qualcomm as it seeks to carry on increasing its stature in the smartphone market.

According to PCWorld DoCoMo is in the midst of a $4 billion investment push to LTE and LTE Advanced technology. Hanging on to Qualcomm could make working on next-gen phone technologies difficult.

DoCoMo’s hopes to get its paws on chips at a knock down price by getting in on the development.