China: Qualcomm partners with Chinese government to push server chips

To kickstart its ambitions in the server space, chip maker Qualcomm is looking to tie up with the Chinese government.

Qualcomm announced that it’s working with the regional government of Guizhou Province — located in southwest China — to form a joint entity for deploying Qualcomm’s server chips in the country. The Chinese provincial government and Qualcomm together are investing $280 million into the new venture. A majority 55% will be owned by the Guizhou government, and the rest will be controlled by Qualcomm.

The Chinese government is positioning the Guizhou Province to become a major cloud computing hub. The government launched a “big data pilot zone” last year to promote industry development in the region. While the joint operation will be based out of the province, most of the employees on the technical front will be based in Beijing.

The partnership will be announced at a Sunday event in Beijing with provincial government officials and Qualcomm executives — including CEO Steve Mollenkopf — in attendence.

“We’ve been looking at China’s server market and we concluded the fastest way to grow is through a joint venture,” said Anand Chandrasekher, a senior vice president leading Qualcomm’s new server business, in an interview. “A partner can help us with local norms, mores and business practices.”

Full content: The Wall Street Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.