Qualcomm (NASDAQ:QCOM), through a subsidiary, will own 45 percent of the joint venture, while the People's Government of Guizhou Province has a 55 percent stake in the new firm.
With the partnership of Qualcomm and the new entity's engineers, Guizhou Huaxintong Semi-Conductor Technology would be going head to head with Intel in the arena of server chips, which Intel now dominates, according to Tech Times.
"Ltd" and will "focus on the design, development and sale of advanced server chipset technology in China".
Using technology and designs from Qualcomm, the new venture will produce server chips for the markets of China. The initial registered capital of the joint venture will be about US$280 million.
Qualcomm's Anand Chandrasekher shows a test version of the company's ARM server chip at an event in San Francisco Oct. 8. Past year in October, the company sent samples of a server chip to potential clients. It said in November that it would co-develop the technology with local Chinese companies.
The deal, which was signed by both Qualcomm and provincial administration's officials at the China National Convention Center in Beijing, will help the US firm make further inroads in the highly-restrictive nation's telecommunications industry.
Guian New Area in Guizhou is an important base for the development of the big data industry and will include a green datacenter cluster of more than 2.5 million servers for companies including China Telecom, China Unicom and China Mobile. Besides the joint venture, it will set up an investment company in Guizhou that will "serve as a vehicle for future investments in China", Qualcomm said Sunday.
With strengthening relations in China, Qualcomm Inc.is making an effort to break the dominance of Intel Corp., its rival in selling chips for server computers.
Qualcomm has previously announced collaborations in China, including for the local production of its Snapdragon mobile processors by Semiconductor Manufacturing International Corporation.
