Qualcomm reportedly will team up with China-based Datang Telecom Group and Beijing Jianguang Asset Management (JAC) to set up a joint venture in China to produce chips for smartphones, according to a Chinese-language Economic Daily News (EDN) report.

The joint venture is expected to be established in the third quarter of 2017, with Tatang and JAC to hold a majority share of over 50%, while Qualcomm will play the role as being a technology supporter.

The planned joint venture will produce chips priced below US$10, targeting the entry-level smartphone segment, noted the paper, adding that this strategy will not lead to competition with Qualcomm, which focuses on chips for premier smartphones.

However, the joint venture is set to compete with Taiwan-based MediaTek and China-based Spreadtrum Communications, which are currently the two major chip suppliers for entry-level models, said the paper.

MediaTek said earlier that it expects its second-quarter revenues to post an up 8% sequential increase to US$56.1-60.6 billion, after seeing its sales decline 18.3% on quarter in the January-March period.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved