Qualcomm signed a strategic cooperation agreement with officials from the People’s Government of Guizhou Province and unveiled a joint venture – the Guizhou Huaxintong Semi-Conductor Technology Co., which will focus on the design, development and sale of advanced server chipset technology in China.
The joint venture, with initial registered capital of RMB 1.85 billion (approx. $280 million USD), will be 55 percent owned by the Guizhou provincial government’s investment arm and 45 percent owned by a subsidiary of Qualcomm.
In addition, Qualcomm also will establish an investment company in Guizhou that will serve as a vehicle for future investments in China. The overarching agreement establishes a long-term commitment between the two parties to work closely together to identify and pursue business opportunities in the province.
“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.
