Monday, January 25, 2016

Qualcomm China Deal

Interesting that the biggest player in mobile chips, is doing a deal in China -- and ending up with a new Chinese company name. I'm not sure what it means, but this kind of deal may shed some light about what is going on with Qualper. 

AT Motley Fool -- Much more at the source

Qualcomm (NASDAQ:QCOM), the largest mobile chipmaker in the world, recently formed a new joint venture in China with the Guizhou Province government. The new company, Guizhou Huaxintong Semiconductor Technology, will design, develop, and manufacture chipsets for servers. Qualcomm will provide research support and server chip technology licenses to the joint venture.
The company will launch with an initial investment of 1.85 billion RMB ($280 million), and be 55% owned by the Chinese government, and 45% owned by Qualcomm. In a press release, Qualcomm President Derek Aberle stated that, although Qualcomm had worked with its Chinese partners for more than two decades, the joint venture "represents a significant increase in our collaboration in China."
This move could help ARM Holdings (NASDAQ:ARMH), which provides the chip designs on which Qualcomm's data centers are based, and harm Intel (NASDAQ:INTC), which has faced multiple challenges in the Chinese data-center market. Let's take a closer look at Qualcomm's data-center ambitions, and how it could turn China into the next big battleground for server chip dominance.

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