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Qualcomm’s joint venture with Chinese province to close this month

U.S. smartphone chipmaker Qualcomm Inc will be seeing shutting down of its joint venture with People’s Government of Guizhou Province, a southeastern province of China, by the end of this month, reported The Information of Friday, citing employees that have been serving at the venture.

Qualcomm, in 2016, has formed a joint venture namely Huaxintong Semiconductor (HXT) around the advanced server technology for its designing, development and selling with an initial fund of $280 million to provide advanced server chips to fulfill the needs of enterprises in the country. In last year on November 27 in a Beijing announcement, HXT said that it has officially started mass production of its StarDragon 4800 chip, an ARM-based server chip.

But at venture’s internal meetings on Thursday, Executives said that the venture would be closed down by April 30, The Information said, without giving further details about the reasons behind the decision.

Registered at Gui’An New Area, Guizhou Province, the venture was also running operations and R&D center in Beijing and Shanghai.

Since its beginning, Qualcomm and Guizhou province came on investing a combined amount of $570 million in HXT as of August 2018, with Qualcomm also to be providing its technological expertise to the venture. Guizhou province owns 55 percent while Qualocmm owns the remaining 45 percent stake in the venture business.

The current news follows an earlier this month report unveiling that the chief executive of venture had been changed and venture’s operations of developing chips in future would either be slowed down or even stopped.

The news of closing down of the venture does not come to the surprise of several Chinese industry insiders as the U.S. chipmaker poorly understood the China’s local market, lacked strategy to compete local rivals and also failed to excel into the country’s chip-making supply chain.

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Pamela Wilson

Written by Pamela Wilson

Pamela Wilson:- Healthcare
I am Pamela Wilson and I focus on breaking news stories and ensuring we (“News Stories World”) offer timely reporting on some of the most recent stories released through market wires about “Healthcare”. I have formerly spent over 7 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for newsstoriesworld.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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