Qualcomm Inks Strategic Cooperation Agreement With China's Guizhou Province

QUALCOMM, Inc. (NASDAQ: QCOM) announced over the weekend that it has reached an agreement with the People's Government of Guizhou Province in China to establish a joint venture.

According to Qualcomm, the joint venture will be named the Guizhou Huaxintong Semi-Conductor Technology Co., Ltd. and will be 45 percent owned by a subsidiary of Qualcomm. The company noted that the strategic cooperation agreement will focus on the design, development and sale of advanced server chipset technology in China.

The joint venture will debut with an initial registered capital of approximately $280 million.

Shares of Qualcomm were trading higher by nearly 2 percent at $46.60 early Tuesday morning.