Qualcomm Inc. (Nasdaq: QCOM), which licenses chip technology and software to cell phone makers, said Wednesday that it will form a new mobile software company with China TechFaith Wireless Communication Technology Ltd., one of the largest handset software providers in China.
The new company -- TechFaith Software China Ltd. -- will develop software for wireless devices and will be based in Beijing and Hangzhou, China. The venture will receive cash and contributions worth up to $35 million from both parties, subject to performance milestones and other conditions.
TechFaith Software, or TechSoft, will operate independently and will focus initially on third-generation CDMA mobile handsets. CDMA, or code-division multiple access technology, provides better capacity for voice and data communications.
Qualcomm said the venture follows its announcement in June 2003 that it planned to invest up to $100 million in smaller- to midsized Chinese companies that develop CDMA-based products and services. China TechFaith later became its first independent handset design partner in China.