China-based smartphone vendor Xiaomi Technology and China-based IC design house Leadcore Technology have established a joint venture specifically for developing 4G chip solutions, according to sources at Taiwan's handset supply chain.

Xiaomi will account for 51% share in the joint venture, while Leadcore, a subsidiary of Datang Telecom, will take up the remaining 49%.

Meanwhile, Datang has announced that Leadcore will transfer its 4G platform, the SDR 1860, to the joint venture for a royalty of CNY103 million (US$16.82 million).

Through the joint venture, Xiaomi will be able to secure low-priced 4G chips, which in return will enable Xiaomi to launch more competitive 4G smartphones, said the sources.

Xiaomi is currently using chipset solutions mainly from Qualcomm and partly from MediaTek and Spreadtrum Communications. The Xiaomi-Leadcore joint venture is likely to affect sales of Spreadtrum's shipments to Xiaomi initially, the sources commented.

Xiaomi has raised its smartphone shipment target for 2014 to 60 million units and aims to ship 100 million units in 2015.

By: DocMemory
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